Betsson to exit US market: Competition too fierce
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7 Sep 2024 •
Reading time: 2 minutes Betsson, the well-known Swedish gambling company, has announced that it is withdrawing from the US market with its sports betting. Earlier this week, the company announced that it will be closing its consumer operations in the US.
For the past two and a half years, Betsson has offered online sports betting in Colorado. Under the Betsafe brand through a partnership with Dostal Alley Casino. This was the only state in the US where Betsson operated and at the end of this month the company will cease these operations.
Betsson pulls out of Colorado, exits US market
Betsson stated that the original plan was to gain more insight into the US sports betting market through Betsafe and to promote its business-to-business (B2B) technology offering, which remains active. Prior to the launch of Betsafe in Colorado, Betsson executives said that potential customers in the B2B market often asked where the company operated in North America. It therefore made sense to have a consumer-facing platform in the US. Later, Betsson also expanded its operations to Ontario, Canada.
Colorado was an attractive market for betting operators but dominance of big players plays a role
Colorado quickly became an attractive market for sports betting operators due to its favorable tax rates and openness to multiple competitors. Today, it is known as one of the fastest growing sports betting states in the US. Like other regions, the market is dominated by the biggest names including DraftKings and FanDuel.
In recent months, several gaming companies have announced that they are leaving the US sports betting market. This has led to significant outflows in Colorado. In addition to Betsson, Betway, BlueBet and ClutchBet have also announced their departures, as well as Westgate’s SuperBook, which is ceasing mobile sports betting outside of Nevada. This means that they too are leaving Colorado.
International operators are pulling out of the US due to high costs and lack of brand recognition
Since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), certain trends have emerged that explain why many operators are leaving the US sports betting market. The financial resources required to attract customers are significant. And brand recognition plays a crucial role.
Companies that are successful in Europe often struggle to establish themselves in the US market. Betsson is a case in point. Although the company is well known in Sweden, the Nordic region and other parts of Europe, it is much less known to US gamblers. In addition to Betsson, other foreign operators have also left the US market, such as Betfred, Betway, PointsBet and Tipico.