Summary
- Super Group announced its decision to exit the US market.
- Though difficult, this decision is essential for achieving the best business results.
- Super Group has announced that it anticipates incurring costs of between $30 million and $40 million related to the exit.
Super Group, the parent company of leading brands like Spin and Betway, has announced its plans to cease operations in the United States. This decision was not made lightly and comes at a time when the company is experiencing a strong second quarter, with revenues outside the U.S. expected to exceed $2 billion.
Super Group says it would refocus its capital and resources
Super Group has determined that the optimal moment to exit is when they are ahead. CEO Neal Menashe recognized the difficulty of this decision but emphasized its necessity. The company pointed to local regulatory changes and their own capital allocation needs as key factors influencing their choice. Menashe explained in a public statement, We intend to focus our capital and resources on markets with the greatest potential for scalable, sustainable, and profitable growth, emphasizing operational efficiency. The U.S. market has become increasingly challenging, particularly for sports betting. Tax rates have continued to climb in many states, including Illinois, where companies like Fanatics, FanDuel, and DraftKings have introduced betting surcharges to offset these increases, effectively passing the cost on to consumers. Despite improving their 2025 full-year guidance to $2 billion, Super Group has chosen to withdraw and reallocate resources where they can have the most significant impact. This strategic move is already under discussion by the company's Chief Financial Officer, Alinda Van Wyk, who has acknowledged the existence of several options for winding down operations. Van Wyk also noted that withdrawing from the U.S. market could incur costs ranging from $30 million to $40 million.
Super Group is one of many companies to sound retreat from the US market
"The Chief Financial Officer confirmed that more information about these potential costs will be provided during our second-quarter earnings announcement. Super Group is not the only company to exit the U.S. market. PointsBet previously sold its U.S. assets to Fanatics Sportsbook & Gaming, and Fox Bet ceased operations in 2023. Fubo Sportsbook, an innovative betting platform that aimed to integrate on-demand streaming with sports subscriptions and wagering, also had to shut down early in 2022. Likewise, MaximBet withdrew from the market that same year, highlighting the growing challenges of conducting sports and gaming business in the United States.
