Betsson Latest Sportsbook to Depart US Market
Include Betsson in the swiftly expanding roster of sportsbook operators leaving the US market. The announcement was made by the Swedish gaming company on Wednesday.
Betsson had provided online sports betting in Colorado for two and a half years using the Betsafe brand in collaboration with Dostal Alley Casino. That was the sole state in the US where Betsson conducted operations, and it will cease that business at the month's end. Betsson debuted in Colorado two years following the legalization of sports betting.
In explaining its choice to exit Colorado and consequently the US market, Betsson mentioned that it aimed to utilize Betsafe for deeper understanding of the US sports betting industry and to advance its business-to-business (B2B) technology services, which will continue to operate.
Prior to introducing Betsafe in Colorado, Betsson executives observed that during discussions with potential B2B clients, they were often inquired about their operations in North America, which made it logical for the company to establish a consumer-facing presence on the continent. The operator subsequently introduced Betsafe to Ontario, Canada.
Betsson Adds to the Growing List of Colorado Exits
Colorado quickly turned into an attractive market for sportsbook operators due to its advantageous tax rate on that type of betting and the entry of numerous competitors. Currently, it ranks among the most rapidly expanding sports betting states in the nation.
Nonetheless, the state has taken a comparable path to others, as even with over a dozen gaming firms providing sports betting services there, the market is primarily led by major players like DraftKings and FanDuel.
The recent wave of declarations from gaming firms signaling their exit from the US sports betting sector has led to considerable losses in Colorado. In addition to Betsson, Betway, BlueBet, and ClutchBet, among others, have informed bettors of their exit from the US and are closing their operations in Colorado.
Westgate’s SuperBook announced that it will stop providing mobile sports betting beyond its home state of Nevada, which means it is also exiting Colorado.
Betsson Recently Became Another ‘Victim’
Following the 2018 Supreme Court decision concerning the Professional and Amateur Sports Protection Act (PASPA), several trends have appeared that help explain why many operators have abandoned US sports betting.
Initially, operators need considerable financial resources to draw in customers within this market. Secondly, brand awareness is important, which clarifies why certain companies that thrive in Europe have faced significant challenges in the US. Betsson serves as an illustration of that trend. It's well recognized in Sweden, the Nordic area, and other European regions, but it’s much less known to bettors in the US.
Besides Betsson, recent exits of foreign operators from US sports betting, either through acquisition or shutting down US operations, involve Betfred, Betway, PointsBet, and Tipico.
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