Betway, SaharaBets Both Cease U.S. Sports Betting Operations

Apr 17, 2024; Tempe, Arizona, USA; Arizona Coyotes players celebrate together on the ice after defeating the Edmonton Oilers 5-2 at Mullett Arena. Mandatory Credit: Mark J. Rebilas-USA TODAY SportsThe two sports betting brands have called it quits in the U.S.Betway online sports betting was live in nine states, but will continue iGaming services in two of themSaharaBets launched sports betting with the Arizona Coyotes in January 2022

Two fringe sports betting operators have called it quits in the U.S.

Betway and SaharaBets both announced their closures in the last 24 hours, as Betway will soon cease its sports betting operations in its nine live U.S. states and SaharaBets immediately ceased its Arizona operations on July 9.

Betway cited a lack of U.S. profitability for its upcoming closure, while SaharaBets is likely shuttering operations due to its partner, the NHL’s Arizona Coyotes, relocating to Utah.

Two More Operators Bite the Dust

Betway’s parent company, Super Group, announced its decision to shutter its U.S. sports betting operations early this morning. Super Group will begin the process of fully closing its U.S. sportsbook operations in the nine states its currently live. These include:

New JerseyPennsylvaniaArizonaColoradoIndianaIowaLouisianaOhioVirginia

Super Group’s CEO Neal Menashe revealed profitability issues led to the decision to cease U.S. operations.

“As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our U.S. operations and, at present, we do not see a long-term path to profitability for the sportsbook product,” he said in a notice on the company’s website.

Despite the sports betting closures, Super Group announced Betway’s iGaming services will continue in both New Jersey and Pennsylvania.

“The vast majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania. We are open to expanding our U.S. footprint if the right investment or strategic opportunities arise.”

Earlier this year, Betway announced it would let its Massachusetts sports betting license lapse when it expired in February. Betway had been licensed in the commonwealth for more than a year but had never launched its services.

SaharaBets Without Arizona Partner

SaharaBets announced its closure on its social media platforms yesterday, notifying customers that its sports betting operations would be ending immediately.

Accounts will be available for customers for the next 30 days to allow for outstanding bets to settle and for users to withdraw funds by Aug. 8.

The end became clear for SaharaBets as its Arizona sports betting partner, the NHL’s Arizona Coyotes, decided to relocate to Utah. Arizona law requires all licensed sports betting operators to either partner with a state sports franchise or state tribe. Ten licenses are earmarked for sports teams while the other 10 are for tribes.

SaharaBets never gained much traction in the state, consistently one of the lowest performing of the 17 licensed sports betting operators in Arizona. In April, SaharaBets reported just a little over $900,000 in online sports betting handle, leading to just $6,235 in sports betting tax revenue for Arizona.

Arizona Seeking New Licenses

Both SaharaBets and Betway operated in Arizona. With their upcoming or immediate exits, only 15 licensed sports betting operators are currently doing business in the state.

However, the Arizona Department of Gaming (ADG) announced in early June it would begin accepting application for sports betting licenses this month. The ADG announced it will accept applications for no less than one sports betting licenses for Arizona Tribes and one for Arizona sports franchises.

The application window for licenses will close on July 19.