Betsson is Shutting Down Betsafe Sportsbook in Colorado

Betsson Group, the Swedish gaming giant, has decided to shut down its Betsafe Sportsbook operations in Colorado by the end of September 2024. This move is part of a broader strategy, reflecting European operators’ challenges in the competitive US sports betting landscape. All in all, four sportsbooks shut down operations in Colorado during September, and Betsson’s exit raises questions about the sustainability of European operators in the US, as the market is being consolidated with many operators exiting the US market this year.

A Betsson spokesperson confirmed the news:

“Betsson has decided to discontinue its B2C operations in Colorado (USA) at the end of September 2024. So, for the foreseeable future, we will not have any B2C offerings in the US. As communicated initially, our B2C operations in Colorado served primarily to display our sportsbook for B2B purposes and to provide us with valuable first-hand insights into the dynamics of the US online sports betting market.”

Betsafe entered the Colorado market in March of 2022, hoping to capture a share of the ever-expanding sports betting space. Still, as more and more US states are embracing legalized sports wagering, new sportsbook providers have flooded the market, making it difficult for smaller operators to gain a foothold. Betsson’s choice to cease B2C operations in Colorado indicates the structural difficulties non-native brands face that rely heavily on brand recognition and marketing to attract customers. Before the Betsafe sportsbook launch, Betsson U.S. Account Director Lance Agostino said:

“We knew our strengths as a large operator and what it would take to get into the market. We evaluated coming in as Betsson, but quickly realized that would be too costly. Instead, we decided that, first and foremost, we wanted to bring our technology over here to offer to other partners and providers. One of the first questions we get asked in RFPs or procurement processes is ‘where else are we live in North America?’ So, we decided it was probably more pragmatic and faster to go ahead and get live ourselves with the Betsafe brand, so we are able to play in our own sandbox.”

In the past year, the Colorado sportsbook market has seen notable service providers’ departure, highlighting the intense pressures even well-established brands can experience in this rapidly evolving sector. Betsson is the second major operator to exit the state within a short timeframe, along with multiple smaller brands, generating a fair amount of speculation regarding the future of such companies in the US market. While Betsson has been expanding its operations across various jurisdictions, Colorado has presented unique difficulties.

One critical factor impacting Betsson’s decision is the US states’ changing regulations and licensing requirements. As regulations shift and evolve, companies must adapt quickly to maintain compliance and operational effectiveness, which can strain resources. Despite these challenges, Betsson remains committed to other territories where it has established its presence, showcasing its adaptability with a strong portfolio of products and services designed for various gaming preferences.

Another factor is international operators’ marketing and promotional budgets in America. Companies often invest heavily in customer acquisition, but sustaining that momentum can prove hard as consumer preferences shift. Betsafe’s marketing efforts in Colorado may have been significant, but the fierce competition with homegrown brands like FanDuel and DraftKings made them less effective.

Industry analysts have suggested that Betsson’s closure of Betsafe could open up discussions about potential mergers or collaborations in markets where maintaining exclusive operations is not yielding expected returns. As operators continually refine their approaches, the US sports betting landscape remains fluid.

Ultimately, Betsson’s withdrawal from the Colorado market through Betsafe is representative of the larger challenges European gaming companies face in the US. The focus now shifts to how other operators respond to these challenges and whether they can capitalize on the evolving market conditions. As Betsson realigns its focus and resources, the implications of such a move will be closely observed by industry stakeholders interested in the future of sports betting in America.

Betsafe’s departure serves as a critical reminder that while ambition and innovation define the sports betting industry, the realities of competition and regulation will always play a pivotal role in determining success.