It’s official: another major sportsbook is exiting the US market. This time, it’s Betway, who follow Unibet, William Hill, Fox Bet, and many others before them. Despite repeated marketing efforts, these gambling companies have ultimately failed to make it big in America. But when a world-renowned operator like Betway struggles, you know the US betting market is dangerously competitive. The benefits are fruitful if you can make it (just ask FanDuel or BetMGM). However, if you can’t solidify a market position, you’re in trouble, which has ultimately happened to Betway. Moving forward, the brand will no longer be operating in the US, although Betway is still going to remain active throughout the rest of the world. This includes Europe, where Betway has been incredibly successful for almost two decades.
Betway’s US Market Exit: Why Are They Leaving?
Betway is leaving the US betting market because they “don’t see a long-term path to profitability for the sportsbook product.” Despite only joining the US market in 2022, Betway experienced significant losses in 2023 before losing $24 million in Q1 2024, causing parent company Super Group to take action. And when it comes to the factors that have caused this financial disaster, there are several at play:
➡️ Market share of the US sports betting market is dominated by FanDuel (39.3%) and DraftKings (34.1%)
➡️ Over 40 sportsbooks are currently operating in the US, which has created an oversaturated market
➡️ It’s incredibly difficult for British Gambling companies to break the US market
This made day-to-day operations extremely difficult for Betway in America, to the extent that profitability simply wasn’t possible for them. The dominance of FanDuel and DraftKings, who have been operating in the US for over a decade, has left all of the other sportsbooks fighting for a smaller piece of the pie. Even BetMGM, a huge household name, only has a 14% share of the iGaming market in the US, which shows just how competitive things have gotten. Ultimately, it reflects the struggle that low to mid-tier gambling operators are faced with when it comes to surviving in a market that FanDuel and DraftKings have monopolized.
Where is Betway Accessible?
Despite exiting the US market, Betway is still a huge sportsbook (having generated over $1 billion in global revenue throughout the first nine months of 2023). Moving forward, it will continue to operate in the UK, Italy, Germany, South Africa, Portugal, and countless other countries around the world. As seen on minimumdepositbettingsites.com, Betway is also one of the most popular minimum deposit betting sites in South Asia countries like Bangladesh, where you can get a welcome bonus of 3,300 BDT.
One of the main reasons why Betway has been a large success outside of the US is because it’s a sportsbook, online casino, and online bingo site rolled into one. Recently, Betway has also introduced eSports betting, allowing users the opportunity to bet on top games like Dota 2 and Call of Duty. This has helped to modernize the platform and ultimately make it more accessible to younger generation gamblers, such as Gen Z and Millenials.
Whether Betway decides to return to the US market later down the line remains to be seen. However, after a couple of disastrous years in Arizona, Colorado, Indiana, New Jersey, and several other states, this seems unlikely. The only feasible way it could happen would be if the US betting market were to become diverse and the market share started to break up into bigger pieces, which would allow the likes of Betway to come back in. It’s worth remembering, though, that Betway doesn’t necessarily need the US market due to the fact that it’s so profitable in other countries. In other words, Betway is doing perfectly fine and will continue to thrive for years to come — with or without a US audience.
Summary: The Future of the US Betting Market
The future is bright for the US betting market, even though some sportsbooks like Betway have decided to exit. More people than ever are betting on sports and online casino games, with Statista reporting that there’ll be 36.9 million online bettors in the US by 2025 and that user penetration will hit 15.6%. This is great news for FanDuel and DraftKings, who will almost certainly hit their previous profit records out of the park. However, it could mean that some of the lower-tier sportsbooks and betting sites also have to exit the market, meaning the FanDuel and DraftKings dominance will continue for years (or even decades) to come.
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