Super Group Lifts 2025 Guidance, Plans to Exit US iGaming Market
The parent company of Betway has announced plans to leave the US iGaming market and expects a one-time charge of $30 million to $40 million related to the departure.
Key Factors Behind Super Group’s Decision
Super Group raised its 2025 financial guidance, but the stock fell after the gaming company announced plans to leave the US iGaming market. According to a statement, the company’s positive momentum over recent quarters was driven by strong sports results, improvements in pricing models, more efficient risk management, a full calendar of sporting events, record deposit levels, and ongoing robust customer engagement and retention across both casino and sports in key markets.
Challenges of Operating in the US iGaming Market
While long-term expectations for the US iGaming market remain robust, it’s still an expensive segment to operate in, particularly for smaller players like Super Group. The company is not part of the dominant few operators in this market, which has led to increased investment without generating desired outcomes and may become increasingly hard to justify to investors.
Regulatory Developments
Super Group CEO Neal Menashe stated that recent regulatory developments combined with ongoing assessments of capital allocation requirements have led the company to believe its stringent hurdle for return on capital will likely not be met in this market anytime soon. He also noted that no new states have approved online casino wagering this year, and some experts predict that Florida may be the only one to do so between now and 2027.
Costs and Savings
The company will incur one-time charges of $30 million to $40 million related to the departure. However, Super Group expects to realize savings starting next year. The company’s Chief Financial Officer Alinda Van Wyk also mentioned that the operator will have a net loss in 2025 due to these costs.
Precedent for Super Group’s Decision
Super Group’s decision to scrap its US iGaming operations isn’t without precedent. The company had previously announced plans to leave the US sports betting industry, joining other companies that made similar announcements in 2024.
Future Plans and Opportunities
Despite struggling in the US, Super Group has found success in Canada. The company is preparing to launch iGaming in Alberta as early as 2026, adding that province to its Canadian roster. This expansion will help diversify the company’s revenue streams and provide new opportunities for growth.
Conclusion
In conclusion, Super Group has made the difficult decision to leave the US iGaming market due to challenges such as regulatory hurdles and capital allocation requirements. While this departure is expected to result in one-time charges, the company expects to realize savings starting next year. With its success in Canada and upcoming launch of iGaming in Alberta, Super Group remains poised for growth and expansion in other markets.