US sports betting operators are thinning their ranks ahead of the upcoming football season. SuperBook recently announced it will cease operations outside of Nevada. Meanwhile, Betfred is peacing out of Ohio bettors, following its Maryland exit in June.
SuperBook’s withdrawal from eight sports betting markets raises questions because it was so abrupt, and there was no reason given as to why it was ending most operations. The company announced the move in a tweet.
“We regret to inform you that SuperBook Sports will no longer be accepting bets or deposits in the following states: AZ, CO, IA, MD, NJ, OH, TN & VA,” the tweet said. “Thank you for being a loyal customer of SuperBook Sports.”
Superbook Could Not Parlay Retail Success
Amid the glitz and glamor of Las Vegas, the SuperBook sportsbook at Westgate stands tall as one of the city’s most beloved betting hubs.
It’s a 35,000-square-foot venue with a massive 220-foot-by-18-foot 4K video wall and over 350 seats, which creates an electrifying atmosphere for sports enthusiasts. However, despite its retail triumphs, SuperBook faced a different challenge online. The transition from brick-and-mortar success to digital dominance proved elusive.
SuperBook had its best run in New Jersey, where it captured 0.3% of revenue share in June. In most of its remaining states, it generated .01%.
Ohio Betting Landscape is Changing
In Ohio, where sports betting recently became legal, SuperBook’s impact was modest. It accounted for a mere 0.08% of the state’s total handle and a paltry 0.02% of gross revenue from January 2024 to May 2024. By comparison, mid-tier sportsbooks like Caesars, Fanatics, and ESPN BET hold a more substantial 5% share of the market. Parx and Betr, too, found themselves on equal footing with SuperBook in the Buckeye State.
But Betfred’s move in Ohio also shouldn’t be overlooked. The landscape is shifting, and these exits reflect the competitive nature of the industry.
Betfred will discontinue its services in Ohio on August 31, 2024, at noon ET. Per the Ohio Casino Control Commission, Betfred players should take note that the last day to place wagers will be August 14, 2024, at 23:59 ET. The last day to initiate a manual withdrawal is August 31, 2024, at noon ET.
Even a partnership with the Cincinnati Bengals wasn’t enough for Betfred to gain significant traction in Ohio.
FanDuel and DraftKings Continue to Dominate
SuperBook Sports’ and Betfred’s struggles to capture an adequate market share are a familiar refrain in the industry — one increasingly dominated by DraftKings and FanDuel.
A report by JMP Securities estimated that in the second quarter, the two sports betting operators combined for 74.5% of the US sports wagering handle. BetMGM was third at 7%.
The latest casualties in the online sports betting market underscore the fact that even well-known gaming companies are struggling and facing high costs when trying to compete with the two major industry giants.
We’re now up to 12 sportsbooks that have either withdrawn or are planning a full withdrawal from online sports betting.
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