The ever-evolving landscape of mobile sports betting in the United States witnessed a significant shake-up this past Friday, as SuperBook threw a curveball to bettors nationwide. In a move that caught many off guard, the company declared its exit from the online betting arena in a sweeping eight states. This announcement, delivered via a tweet at 5:38 p.m. PDT, marked an end of an era for SuperBook in Colorado, New Jersey, Arizona, Tennessee, Ohio, Iowa, Maryland, and Virginia, effective 8 p.m. EDT that same night.
Despite this withdrawal, the spirit of SuperBook lives on in Nevada. Here, it continues to welcome wagers through its mobile app and the iconic SuperBook at the Westgate in Las Vegas, ensuring that the legacy of one of the betting world's stalwarts endures.
SuperBook's decision is not an isolated incident but rather part of a broader trend that has seen smaller mobile sportsbooks reassessing their strategies amidst fierce competition. Earlier this month, Super Group, Betway's parent company, shifted its focus towards internet casino gaming in New Jersey and Pennsylvania, steering clear of the U.S. mobile sports betting market. Similarly, Betfred announced its upcoming departure from Maryland, with plans to exit Ohio as well. In a significant move, BetMGM subsidiary LeoVegas acquired Tipico’s U.S. sports betting platform, signaling consolidation in a market dominated by giants like FanDuel and DraftKings, who command a staggering share across states.
In the cutthroat arena of mobile sports betting, size and scale matter. SuperBook's performance in the states it operated paints a telling picture. Despite its efforts, the company struggled to carve out a significant market share, barely making a dent against the behemoths of the betting world. For instance, in New Jersey, SuperBook's revenue contribution was a mere drop in the ocean, less than 0.1% of the state's colossal $573.1 million total sportsbook earnings for the first half of 2024.
Arizona emerged as a relative bright spot for SuperBook, where it managed to rake in $3.5 million in bets, translating to $42,350 in gross revenue. Yet, even here, the company's hold was a modest 1.2%. Virginia offered a glimmer of hope with a near-6% win rate, but it still accounted for only 0.1% of the mobile handle this year.
A significant hurdle for SuperBook, and indeed many smaller players, has been the unsustainable burden of promotional spend. In a bid to attract bettors, companies often resort to lavish bonuses and credits, which can eat into profits. For SuperBook, promotional expenditures in some states swallowed more than half of its gross revenue, a stark indicator of the challenging economics of the sports betting industry.
As the dust settles on SuperBook's strategic retreat, the episode underscores the relentless pressures and dynamic shifts within the U.S. mobile sports betting market. For enthusiasts and analysts alike, it serves as a compelling chapter in the ongoing saga of digital wagering, highlighting the fierce competition, strategic recalibrations, and the relentless pursuit of profitability in the world of sports betting.
