Super Group Still Eyeing Return to U.S. Online Casinos

Super Group, the owners of the Betway sportsbook brand, is set to give online casinos in the US another go around. This comes after their initial foray into the online casino industry and following a dismal Q2 earnings call which saw them announce the shutting down of Betway’s online sports betting operations in seven U.S. markets.

What Happened During Their Initial Venture into the U.S. Online Casinos?

The shutdown was decided upon by Super Group after an extensive internal review determined there would be a long road towards profitability for its U.S. sports betting business. Moreover, they are focusing their efforts in cultivating their iGaming projects and campaigns.

During the Q2 earnings call back in August of this year, the cost of the shutdown came in at $38.6 million rather than the $49 million projected during the Q2 earnings call. Betway sportsbook would be shutting down in the following U.S. states:

Arizona

Colorado

Illinois

Indiana

Louisiana

Ohio

Virginia

Neal Menashe, CEO of Super Group, noted that the cost of the U.S. online sports betting exit “should not exceed” €45 million ($49 million). This figure covers redundancy costs, settlement of existing contracts and a maximum provision for the wind-down of the sportsbook product. 

Menashe also stated that the estimate is subject to change, and an updated number will be provided in the next quarterly update. That said, Betway sportsbook is still operating in New Jersey and Pennsylvania.

Super Group Trying Online Casinos in the U.S. Again

Even though sports betting was initially a failure for the brand early this year, the executives of Super Group are still willing to try establishing a foothold in online casinos and discover success in other U.S. gaming verticals.

Menashe stated during the Q3 earnings call that the company tried sports, and unfortunately, it didn’t work. However, the company is really good at running casinos,

“So we are in New Jersey and Pennsylvanian. We are seeing good revenue increase. We’re seeing good green shoots. Again, we’re not chasing revenue for revenue and never to make a profit, so we have to make sure we can get to the revenue target that we’ve set the business, which so far they are meeting,” Menashe added on the earnings call.

Factors Working in Super Group’s Favor

Super Group’s goal is to be one  of the top online casino real money operators in the U.S. Luckily for them, there are a couple of factors that they can leverage to get back into the swing of things, as far as online casinos are concerned:

Good Brand Reputation

Super Group is not new to the online casino industry. Part of their brands that the market already knows are Spin, Jackpot City, and Betway. Generally, these brands are considered to be part of the top 10 online casinos mainly due to their reputation.

Super Group can capitalize on this to attract more customers and retain them compared to other brands that are still trying to make a name for themselves.

Playing to their Strengths

Menashe also claimed during the Q3 earnings call that their company is pretty good at managing casinos, and they should lean towards using their experience to double down their efforts when they take another stab at U.S. online casinos:

“… And then we want to be able to turn this into a profitable business. But if we feel that it gets too far away from being able to achieve profitability, then we have to change our stance. But remember, the casino business is easier for us and this is what our bread and butter is across the world. America is no different.”

Rolling Out of New Brands

Per the Q3 earnings presentation, Super Group is looking at rolling out two more brands from the Spin Games portfolio in the two states, one of which will be Jackpot City.

This comes from other operators, such as Caesars, who are reaping success from launching multiple different casino brands under its umbrella. This includes Caesars Casino, Caesars Palace Online Casino and the recently launched Horseshoe Online Casino.

Utilizing Technological Advancements

Utilizing online casino technology to traditional ones is the right direction for Super Group to go if they finally pull the trigger and go for a second go-around in the U.S. market. 

One of the burgeoning technologies they can tap into is the rise of crypto casinos. If they can shoulder the expenses, they can aim to be one of the best crypto casino operators in the U.S.

For now, Super Group is committed to improving their U.S. iGaming initiatives. Menashe clarified that things first had to make sense on the balance sheet and that expenditure in the market would be lower in Q4 than it was in Q3 before they could consider batting up for another round in the U.S. online casino market.