Betway Parent to Complete U.S. Exodus, Blames Tax Volatility

Super Group, the parent of Betway, is making a full retreat from the U.S. 

The company, which is publicly traded on the New York Stock Exchange and has its global headquarters in the Channel Islands, said Tuesday it is winding down the U.S. operations of its iGaming business, Spin, a move that comes almost exactly a year after it announced it would be closing its U.S. sportsbook operations. 

A company spokesperson tells Front Office Sports that the new announcement represents a “full exit of our business and brands in the U.S.”

Last summer, the company said it was getting out of the U.S. sports betting industry after determining “we do not see a long-term path to profitability” in that area; it also noted last summer that iGaming generated the “vast majority” of Super Group’s revenue. In Tuesday’s statement, CEO Neal Menashe cited “recent regulatory developments combined with ongoing assessment of capital allocation requirements” as the reason for its iGaming exit. 

The company expects to take a “restructuring” hit of between $30 million and $40 million in connection with its complete exit from the U.S.

The company spokesperson tells FOS that the regulatory issues causing it to flee the U.S. are centered around “volatile state-by-state tax regimes, highlighted by the recent tax rise in New Jersey,” among other reasons. New Jersey recently agreed to raise the tax rate on online casino and sports betting operators in the state to 19.75%, up from 15% and 13%, respectively.

“This is a difficult decision, particularly because our U.S. team has worked hard and made progress over recent quarters,” Menashe said in Tuesday’s statement. 

Super Group’s U.S. exodus comes as the market for online casino and sportsbook operators in the country has become congested while still being dominated by the two biggest titans: DraftKings and FanDuel. Super Group said in February that last year it invested a total of 61 million euros ($71.5 million) in the U.S.—a figure which it expected to “reduce considerably” in 2025—while posting a 60.8 million euro loss in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA.

Despite fleeing the U.S., Super Group says its overall business is healthy. In Tuesday’s statement, the company said it expects the second quarter of 2025 to represent the “strongest quarter” in company history. It anticipates total full-year revenue to indeed $2 billion, up from its previous guidance of just under $2 billion.

Super Group still operates Betway and Spin throughout Europe and Africa. Last year, it also pulled Betway out of Brazil.

The flurry of exit activity comes only a few years after Super Group completed the deal that resulted in it becoming a publicly traded company in the U.S. In January 2022, it closed its merger with a special purpose acquisition company, or SPAC, called Sports Entertainment Acquisition Corp. SPACs are shell corporations formed to hold an IPO and then merge with an existing business. Their popularity as an alternative route to the public markets exploded in the wake of the COVID-19 pandemic.

When the merger was completed, Menashe said “now as a public company, we plan to continue to strengthen our brand among the worldwide online betting and gaming community by growing our customer base, expanding into new markets and developing strategic partnerships with major sports franchises.”