Super Group CEO Neal Menashe says the Betway and Spin owner is ceasing its US igaming operations because the company does not see a strong return on capital happening “any time soon.”
Super Group had left its stateside online casino operations intact when it announced its intention to pull out of the US sports betting market almost exactly a year ago.
Two igaming brands from its Spin portfolio were left to operate in New Jersey and Pennsylvania.
However, a “comprehensive evaluation” of “global priorities” has signalled the end of Super Group’s association with the market.
The operator group, which has enjoyed notable success in Europe and Africa as its US arm has struggled, said it is assessing strategic options for its operations there.
Chief financial officer Alinda van Wyk said Super Group can expect a one-time cash restructuring cost of between US$30m and $40m for ending its US operations and is “actively pursuing multiple efforts to minimise” the impact of this.
Menashe added: “This is a difficult decision, particularly because our US team has worked hard and made progress over recent quarters.
“Nonetheless, recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon.
“We therefore intend to focus capital and resources on markets where we see the greatest opportunity for scalable, sustainable, profitable super growth, with a disciplined emphasis on operational efficiency.”
Outside of the US, though, Super Group said Q2 is expected to be the strongest quarter in the company’s history.
In a preliminary update for the quarter, the business said its “positive momentum over recent quarters continued,” reporting “solid revenue growth across all markets.”
It said strong sports results, improvements in pricing models and more efficient risk management – as well as “record” deposit levels – have made an impact.
Super Group is therefore raising its ex-US guidance for 2025 and now expects revenue of over $2bn versus prior guidance of $1.925bn.
Adjusted EBITDA is now expected to be in excess of $480m, having previously been forecast at $457m.
“We are very pleased with our performance in the second quarter, reflecting continued momentum and discipline across our core markets and further validating the strength of our operating model and brands,” Menashe said.
“We remain focused on driving profitable and sustainable growth through consistent execution and continue to be super-confident in the long-term growth potential of our business.”
