Earlier this July month, Super Group, the company behind Betway Sportsbook and Casino, publicized a significant strategic shift in its New Jersey operations. While the company's sportsbook will exit the state, the New Jersey online casino will continue to operate. This decision follows an "extensive review," according to Neal Menashe, Super Group's Chief Executive Officer, who emphasized the differing performance outcomes of their offerings in the Garden State.

A monumental decision

Menashe highlighted that the decision to shut down the sportsbook was driven by a thorough evaluation of its performance as well as its future potential. In contrast, the online casino sector has proven to be a substantial revenue generator for Super Group in New Jersey. According to Menashe, "The vast majority of Super Group's revenue is generated in iGaming." He added that In line with this particular strategy, they will continue to offer their leading casino product in New Jersey and Pennsylvania.

This announcement aligns with broader market trends in New Jersey, where online casinos have shown robust performance. June 2024, in particular, marked the 4th-best month in the state's online casino history in terms of revenue, with 30 online casinos collectively generating $186.8 million.

Betway Casino New Jersey performance

Betway Casino in New Jersey, while not leading the pack, has shown steady performance. For instance, in June of 2024, it made $396,223 in revenue, placing it 28th among the 30 online casinos that reported good earnings. Despite its lower ranking, Betway Casino's continued operation in New Jersey signals Super Group's confidence in its potential growth.

The revenue figures for Betway Casino since January of 2024, when the NJDGE (New Jersey Division of Gaming Enforcement) began reporting individual online casino revenues, reflect its incremental progress: in January of 2024, it earned a revenue of $237,329 (0.13% of total online casino revenue), while the following month saw a revenue of $290,930 (0.16%). In March, it gained $199,328 (0.10%) in revenue, while in April, Betway earned a total of $429,175, gaining 0.23% of the total online casino revenue for NJ. May saw a slight dip in revenue at $211,114 (0.10%), but it bounced back in June with a total revenue of $396,223, taking .21% of the NJ casino market.

In total, Betway Casino NJ has generated $1,764,099 in 2024, accounting for 0.16% of the revenue accumulated across all online casinos in New Jersey. These figures emphasize the casino's consistent performance, albeit modest compared to the state's top earners.

Market dynamics and future outlook

The exit of several sportsbooks from New Jersey has reshaped the competitive landscape, prompting operators to reassess their strategies. The impressive performance of the online casino market, as evidenced by the substantial revenues in June 2024, suggests a strong preference among consumers for iGaming over sports betting in the state.

Betway Casino NJ's ability to maintain its presence in such a dynamic market will depend on its ability to attract and retain players. As the company focuses on its casino product, leveraging the broader market trends and consumer preferences will be crucial for its future success.

A focus on changing market needs and growth

Super Group (SGHC) Limited, the parent company of Spin and Betway, says its decision to leave the sportsbook market in the US comes after evaluating the long-term profitability and resource allocation across its global operations.

In a statement, Super Group explained, "As a global business, we constantly evaluate the optimal use of our resources across all markets in which we operate. We have recently concluded an extensive review of our US operations and, at present, we do not see a long-term path to profitability for the sportsbook product."

The company will soon initiate the process of closing its sportsbook operations in the nine states where it is active at the moment. This move will be conducted in collaboration with relevant regulators and partners to ensure a smooth and compliant transition.

Despite this exit, Super Group remains committed to the US market through its iGaming presence. The company plans to continue operating two iGaming brands from its Spin portfolio, which includes Jackpot City, in Pennsylvania and New Jersey. This strategic shift accentuates Super Group's focus on areas with higher potential for sustainable growth and profitability.

A strategic, well-thought-out move

Super Group's decision reflects the challenging landscape of the sports betting market in the US, where intense competition and regulatory complexities can impact long-term viability. But by refocusing on its iGaming operations, Super Group aims to leverage its strengths and maintain a robust presence in the US gaming industry.

The exit plan marks a significant shift in Super Group's US strategy, as the company seeks to optimize its global operations and concentrate resources on more promising ventures. This strategic repositioning is expected to better position Super Group for future growth and success. Moving forward, it will be interesting to observe how Betway Casino NJ adapts and competes in the dynamic landscape of New Jersey's online gaming sector.