Betsson Latest Sportsbook to Depart US Market

Posted on: September 5, 2024, 06:09h. 

Last updated on: September 6, 2024, 09:37h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Add Betsson to the rapidly growing list of sportsbook operators abandoning the US market. The Swedish gaming company made the announcement on Wednesday.

Betsson
A Betsson advertisement. The Swedish company is pulling the plug on its consumer-facing US sports betting business. (Image: Betsson)

Betsson had been offering online sports betting in Colorado under the Betsafe brand for two-and-a-half years through a partnership with Dostal Alley Casino. That was the only state in the US in which Betsson operated, and it will halt that business at the end of this month. Betsson launched in Colorado two years after it legalized sports wagering.

In detailing the decision to withdraw from Colorado and, thus the US market, Betsson said it planned to leverage Betsafe to gain more insight into the US sports wagering market and to promote its business-to-business (B2B) technology offering, which will remain in place.

Before launching Betsafe in Colorado, Betsson executives noted that when working with prospective clients on the B2B front, they were frequently asked where else they operated in North America, so it made sense for the company to have some consumer-facing presence on this continent. The operator later brought Betsafe to Ontario, Canada.

Betsson Joins Long List of Colorado Departures

Colorado fast became an enticing market for sportsbook operators because it has a favorable tax rate on that form of wagering and because it opened to a slew of competitors. Today, it’s one of the fastest-growing sports betting states in the country.

However, the state has followed a similar trajectory to others in that while there are more than a dozen gaming companies offering sports wagering services there, the market is largely dominated by the biggest names, including DraftKings and FanDuel.

The recent spate of announcements by gaming companies indicating they’re abandoning the US sports betting market has resulted in significant attrition in Colorado. Beyond Betsson, Betway, BlueBet, and ClutchBet, among others, have told bettors they’re leaving the US and are shuttering their Colorado operations.

Westgate’s SuperBook recently said it will cease offering mobile sports betting outside of its home state of Nevada, meaning it’s also leaving Colorado.

Betsson Just Latest ‘Victim’

Since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), some trends have emerged that contribute to explanations regarding why so many operators have thrown in the towel on US sports wagering.

First, it takes significant financial resources for operators to attract customers in this market. Second, brand recognition matters, which explains why some companies that are successful in Europe have struggled mightily in the US. Betsson is an example of that trend. It’s widely known in Sweden, the Nordic region, and other parts of Europe, but it’s significantly less familiar to US bettors.

In addition to Betsson, recent departures among foreign operators from US sports betting, either by way of acquisition or closure of US operations, include Betfred, Betway, PointsBet, and Tipico.