Super Group announced its plan to cease offering iGaming services in Pennsylvania and New Jersey, citing doubts about long-term profitability in the US. The company owns both Betway and Spin Casino and will completely leave the US market, having already closed its US sports betting operation one year ago. 

At present, Super Group provides iGaming inside Pennsylvania and New Jersey only, but said on Tuesday it would leave these last US states because of “regulatory shifts impacting long-term US expected profitability.” This withdrawal forms part of Super Group’s strategic review, designed to simplify business operations and increase shareholder value over time.

The operator expects the US exit to cost around $30 million to $40 million, but believes cost reductions will start from 2026. In earlier communication, the company said 2025 revenue for its US branch could be €85 million ($99.5 million). In Q1, the North American unit, including Canada, was responsible for 35% of the entire business.

The US legal betting and iGaming sector faces a time of instability, as no new states are launching iGaming in 2024, and gambling tax increases have been suggested in several places. At the same time, regulated sports betting struggles against the growth of prediction markets. Peer-to-peer products and sweepstakes also challenge licensed iGaming.

No Final Exit Date Is Set for the US Pullout

In July 2024, Super Group stopped its US sportsbook service in all nine available states, with CEO Neil Menashe explaining there was no clear path to profit for that offer. Ending sportsbook operations caused a one-time charge of €32.7 million during 2024, but Super Group kept iGaming in Pennsylvania and New Jersey as those areas still gave business results. There was a focus on expanding the Spin product inside these states. 

Menashe shared, “Recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon.” The withdrawal date has not been shared yet, since Super Group says it is still checking other strategies. More details are expected in the Q2 2025 financial report, scheduled for release in August, as well as during the company’s Investor Day in September. Super Group opened its US market in 2023 after buying Digital Gaming Corporation (DGC), which owned Betway rights for the United States.  

Before This Deal, Betway Had Been Working Under DGC in the US Since 2021

Super Group has increased its 2025 full-year revenue guidance (excluding the US), now aiming for more than $2 billion, compared to the earlier target of $1.92 billion. In 2024, group revenue reached €1.7 billion ($1.99 billion), representing an 18% increase from 2023. Adjusted EBITDA is expected to be above $480 million for 2025, better than the previous guidance of $457 million, compared to €330.3 million ($386.8 million) in 2024 and €198.2 million in the earlier year.

The improvement was partly due to positive sports results in Q2, better pricing strategies, and more efficient risk control, noted by Super Group. After a $4.75 billion merger in 2022 with Sports Entertainment Acquisition Corp, Super Group was listed on the New York Stock Exchange (NYSE). The company shared with iGB that the NYSE listing has improved its market position, as investors and banks now have a better understanding of the business plan and reputation.

According to the investor relations team, “We’re also now more credible with regulators and banks than when we were privately held, and even our customers appreciate the clear message of strength and integrity that being a listed business gives us.” However, Super Group’s share price dropped slightly from $11.38 when markets opened on Tuesday to $11.02 immediately after the announcement of its US exit.