Add Betsson to the rapidly growing list of sportsbook operators abandoning the US market. The Swedish gaming company made the announcement on Wednesday that it is pulling the plug on its consumer-facing US sports betting business. Betsson had been offering online sports betting in Colorado under the Betsafe brand for two-and-a-half years through a partnership with Dostal Alley Casino. That was the only state in the US in which Betsson operated, and it will halt that business at the end of this month. Betsson launched in the state two years after it legalized sports wagering.
In detailing the decision to withdraw from Colorado and, thus, the US market, Betsson said its plan has been to leverage Betsafe to gain more insight into the US sports wagering market and to promote its business-to-business (B2B) technology offering, which will remain in place. Prior to launching Betsafe in Colorado, Betsson executives noted that when working with prospective clients on the B2B front, they were frequently asked where else they operated in North America, so it made sense for the company to have some consumer-facing presence on this continent. The operator later brought Betsafe to Ontario, Canada, too.
Colorado quickly became an enticing market for sportsbook operators due to its favorable tax rate on sports wagering and its openness to numerous competitors. Today, it stands as one of the fastest-growing sports betting states in the country. However, like other regions, it has seen more than a dozen gaming companies offering sports wagering services, yet the market is largely dominated by the biggest names, including DraftKings and FanDuel. The recent wave of announcements by gaming companies indicating their departure from the US sports betting market has resulted in significant attrition in Colorado. Beyond Betsson, Betway, BlueBet, and ClutchBet, among others, have informed bettors they’re exiting the US, including shutting down Colorado operations. Westgate’s SuperBook recently announced it would cease offering mobile sports betting outside of its home state of Nevada, meaning it is also leaving Colorado.
Since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), certain trends have emerged that can explain why many operators have chosen to exit the US sports wagering market. The financial resources required to attract customers are significant, and brand recognition plays a crucial role. Companies that thrive in Europe often struggle in the US market, and Betsson is an example of this trend. While it is widely known in Sweden, the Nordic region, and other parts of Europe, it is significantly less familiar to US bettors. In addition to Betsson, recent departures of foreign operators from US sports betting, either through acquisition or closure of US operations, include Betfred, Betway, PointsBet, and Tipico.
