Six years into legal single-game sports betting outside Nevada and it's clear that a tech platform isn’t enough to be competitive.
And promotions. And market access. And team partnerships.
Betway’s Wednesday announcement that it was leaving all nine operating states wasn’t stunning. The European gaming giant never achieved more than low single-digit market share in any state.
In most states, it didn’t even come close to cracking 1% of total handle.
But if Betway, seemingly one of the better-positioned European brands poised to challenge the American leaders, can’t crack 1%, what hope do other operators have?
The departure reaffirms the difficulty all companies face gaining traction in what seems increasingly like a U.S. market dominated by just a handful of operators. A few years after more than 30 sportsbook brands operated in at least one state, Americans are coming closer to the reality where a handful of regulated brands take virtually all bets.
Betway never gained footing
A host of international sportsbook operators rushed into the U.S. following the May 2018 Supreme Court decision striking down the federal wagering ban. Betway, the flagship sportsbook of Matla-based parent company Super Group, expanded into 25 international jurisdictions after its 2006 launch. In 2022, the company was listed on the New York Stock Exchange.
Like other top European competitors such as 888 and William Hill, Betway began an expansive promotional and marketing approach to American audiences following the Court decision. In 2021, Betway struck a major deal with the NHL that included prominent marketing displays across Stanley Cup playoff games. The operator also partnered with the NHL’s Philadelphia Flyers and Ottawa Senators.
The company also announced deals with the NBA’s Philadelphia 76ers, Chicago Bulls, and Cleveland Cavaliers. Betway partnered with retired American tennis hall of famer Andy Roddick in 2023 and re-upped a marketing campaign around him ahead of this month’s Wimbledon tournament.
Its lines, interface, and bet selections were lauded by gaming industry stakeholders, drawing comparisons to Britain’s bet365, considered by many to be the gold standard in all those areas. While many American-centric brands struggled to build the necessary tech platforms, Betway was better positioned than many competitors.
By 2023, the company offered its sportsbook in nine states: Arizona, Colorado, Iowa, Indiana, Louisiana, New Jersey, Ohio, Pennsylvania, and Virginia. It withdrew from Illinois later that year after winning a bid to pay $20 million for a mobile sports betting license.
Less than a year later, the sportsbook was leaving the U.S. entirely.
Ten months ago they were going to spend $20 m on an Illinois mobile only license. Now they’re out. This industry is full of nut jobs.
— SteveBrubaker (@stevebrubaker) July 10, 2024
Like 888, which branded under the Sports Illustrated name in the U.S., Betway never became a household name to Americans. William Hill’s American assets were acquired and rebranded by Caesars, one of four books that has reached double-digit U.S. market share.
FanDuel (No. 1 in national market share) and BetMGM (No. 3), were bolstered by their own deals with European gaming giants Flutter and GVC, respectively. DraftKings (No. 2) acquired Europe’s SBTech to create its current sportsbook.
Future ‘quadopoly’
This quartet of FanDuel, DraftKings, BetMGM, and Caesars already owns roughly 85% of the national handle. Few books appear to have the technology, branding, and finances to make a significant impact on their “quadopoly.”
Bet365, as well as Hard Rock, ESPN BET, BetRivers, and Fanatics, have all shown staying power but little threat to the above companies. Combined, these nine books make up roughly 99% of national market share.
You’re seeing the beginning of US betting operator consolidation and liquidation. Every niche operator trying to use the same rec model will either get bought up or go out of business.
— Joey Knish (@JoeyKnish22) July 10, 2024
FD buying Penn etc.
At the end you’ll have 4-5 big brands left (FD, DK, MGM, Caesar’s) https://t.co/k1THYBJSNn
Except for niche operators such as Circa, it appears increasingly like a matter of “when” not “if” the remaining books are acquired or cease taking bets entirely.
Betway achieved 0.26% handle market share in Virginia the first quarter of 2024. This was better than six other books.
Super Group announced Wednesday it would keep offering the Betway iCasino in the two legal iGaming markets where it operates, New Jersey and Pennsylvania. The potential for new competitive online casino gaming markets, beyond the four states where it exists now, could help preserve operators willing to tread water.
But with license renewal fees usually costing millions of dollars, plus the day-to-day expenses of operating in a (comparatively) low-margin sports betting industry, it seems financially implausible that many more standalone sportsbooks can survive economically. It also seems to deter any further market entrants.
Bottom line
Based off its miniscule U.S. market share, few American bettors will miss the Betway sportsbook. But this exit speeds up the reality where U.S. bettors will, even in the most expansive markets, face a dwindling number of betting options.
