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US Sportsbooks Exit the Market

By Blake Roberts Founder & Editor in Chief Updated: 23 December 2024

Blake Roberts Founder & Editor in Chief

Blake Roberts is the founder of Betting.US and is currently heading the creative team as Editor in Chief. Born and raised in Morgantown, West Virginia, Blake is a great sports fan, with football and basketball being his favorite. He’s our trusted voice for all betting-related matters.

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Following the repeal of PASPA in 2018, the US saw an influx of sportsbooks attempting to enter the market. However, due to stricter regulations and an increasingly more competitive market, many sportsbooks are now downsizing or leaving the US. Read on to learn more about this recent trend and its implications.

US Market Context

After the Professional and Amateur Sports Protection Act was repealed in 2018, many states began preparing legislation to allow online sports betting. More than 40 sportsbooks are online, with 38 states legalizing them. While the market is dominated by top brands like BetMGM, Caesars, and DraftKings, new ones are still being launched, such as ESPN Bet.

There will always be innovations coming from other groups along the way, but the biggest profitability for the consumer is consistent competition, whether that is three players or a dozen.

Brendan Bussman BGlobal consultant

These sportsbooks have also established partnerships with various leagues, such as the NBA and NFL, to receive accurate data. While some states still haven’t legalized sports betting, the market continues to grow, with sports betting being advertised on stadiums and TV, and commentators discussing player stats during games.

The Market Changes

In recent years, the US has begun implementing stricter laws on sports betting. New York introduced a law where advertisements have to warn of the harmful effects of gambling. Meanwhile, states like New Jersey and Ohio have banned prop bets. Federal regulations like the SAFE Bet Act are also being discussed, which will limit deposits and prohibit sportsbooks from advertising during live sports events.

The question is: Can you make a business profitable enough to make sense to continue operating in the U.S. versus putting this effort and investment elsewhere that might yield a bigger return?

Kresimir Spajic CEO of BetFred

Aside from the new laws, the market is also becoming more competitive, increasing marketing costs. Caesars Entertainment has scaled back its marketing, while Wynn Resorts removed WynnBET from certain states in 2023, citing outsized marketing costs for sports betting as one of the reasons. Some operators like Betway don’t see further profitability from expansion.

Scaling Down and Leaving

Some operators will remain in the US market but operate in fewer states. BetFred operates in Colorado, Pennsylvania, Iowa, Louisiana, and Virginia, while WynnBet offers mobile sports betting in Las Vegas. Even larger companies like DraftKings and BetMGM are scaling back their partnerships with sports teams and leagues to reduce marketing costs. However, many operators are leaving the US market entirely, which includes:

Tipico Group
Evoke
Kindred Group
Super Group

Evoke (formerly 888) sold some of its assets to Hard Rock International and ended its partnership with SI Illustrated. Meanwhile, Kindred Group withdrew its entire Unibet brand following a strategic review. Of the 74 companies that entered after 2018, only 43 still operate in the US.

Smaller Companies Thrive

Not all companies have faced such issues, as some smaller sportsbooks continue to be successful. Companies like Sporttrade and Betr are slowly growing, while Underdog sports earned a North Carolina license in March. Many of these sportsbooks offer unique betting options like microbetting, with Sporttrade’s platform functioning similarly to a stock market.

If those that have withdrawn, had said, ‘Hey, there are three markets that I think work, I’m going to be in those,’ then they would still be around.

Brendan Bussman BGlobal consultant

The success of these companies can be attributed to finding a niche. Sportsbooks must stand out with their products as more companies appear and expand. Rapid expansion can also be detrimental, as operators focusing on a core market can establish a stronger presence. Many of the remaining big companies are also focusing on improving their services.

Conclusion

The market has changed significantly since 2018. Companies are focusing on more specific markets and avoiding rapid expansion. Overextending can incur significant costs, which has caused some operators to leave the US entirely. Many operators will also focus on providing innovative products to compete with other sportsbooks.