Betfred has recently announced that it will shutter operations in Virginia and Arizona with many industry insiders speculating it is only a matter of time before the UK bookmaker exits the U.S. mobile sports betting market entirely.
Going, Going, Gone
Betfred is not accepting any new registrations or deposits in Virginia and its last day in the market is Monday, October 21st. It is just the most recent of many exits including its departure from Maryland in July.
“This is not the first time this has happened in Maryland,” said John Martin, director of the Maryland Lottery and Gaming Control Agency, during a regulatory meeting when the subject of Betfred came up.
Martin then added: “I don’t think it’s going to be the last time.”
Betfred then pulled up stakes in Colorado and Ohio in August. Currently, the company still operates retail shops in Louisiana, Nevada, and Washington State but the company’s mobile platform is now available in only two states, Iowa, and Pennsylvania, after announcing it was also leaving Arizona.
Speaking of which, Betfred has already terminated the creation of any new activity in Arizona including establishing new accounts, making deposits, and placing bets. Online operations will shut down on Monday, November 4th, the day before the presidential election.
“We are working closely with regulators to ensure this process is handled securely, correctly, and done in accordance with all state regulations and guidelines,” the company stated. “We strive to meet player and regulatory needs and expectations.”
The Grand Canyon State has seen a mass exodus of smaller sportsbooks with Betfred joining the likes of Unibet, WynnBet, and most recently SaharaBets and SuperBook.
End of Error?
According to its website, “Betfred is one of the largest independent bookmakers in the UK, with 1,350 betting shops and an online business with over 800,000 active customers.”
However, that popularity in Europe did nothing to benefit the company in its expansion into the U.S. sports betting market. Speculation is rampant that it won’t be long before Betfred folds its tent in the U.S. and focuses exclusively on its UK operations.
When Betfred USA CEO Kresimir Spajcic was asked six weeks ago whether his company could maintain operations in the U.S. market he stated, “I truly believe that my team and I can create a sustainable business. 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?”
Spajcic further added that Betfred’s future in the United States would be clearer “by the end of the year,” and admitted a complete withdrawal was “on the table as well if we don’t have enough value that we can create within the U.S.”
However, the Betfred CEO was not all doom and gloom, stating some contracts could be rewritten which would boost profits and create incentives to keep its current operations afloat and perhaps move into bigger markets.
Spajcic said: “By the end of the year, we are going to know where all these deals that we are trying to negotiate are going. But one very unique deal, even if it is in only one state, could make it happen because remember, many states here have sizable populations and consequently large revenue potential.”
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