Betway has officially pulled out of the U.S. market, which means North Carolina residents won’t get a chance to use the sportsbook.
More importantly though, Betway’s exit has grim implications for the future of small sportsbooks in North Carolina.
Betway previously showed interest in entering the North Carolina market but never did. Before its recent announcement, it operated in just nine states. One of which was neighboring Virginia.
While Betway didn’t launch in the Tar Heel State, its U.S. departure signals how tough it can be to break through. Especially in the competitive North Carolina sports betting market.
Why is Betway leaving the U.S. sports betting market?
Super Group, Betway’s European parent company, said it conducted an “extensive internal review” of its operations in the U.S.
The bottom line: Betway’s road to profitability would be a long one. It just was not generating the money originally hoped. As Steve Ruddock noted, small sportsbooks have gotten increasingly forced to the margins.
In the first quarter of 2024, Super Group reported $24 million in losses. In Fiscal Year 2023, the group recorded $61 million in company-wide losses.
How many sportsbook licenses are left in North Carolina?
North Carolina’s sportsbook license approach is different from that of other states. Operators must secure a license with one of the state’s 11 professional sports entities, which includes professional teams, racetracks, PGA golf courses, NASCAR, and the PGA itself. It’s a meticulous process.
Right now, there are four open commercial sportsbook licenses in the Tar Heel State. The four entities that have yet to partner with a sportsbook are the Carolina Panthers, Charlotte FC, NC Courage, and North Wilkesboro Speedway.
Here’s a list of the current partnerships:
– Fanatics Sportsbook and the Carolina Hurricanes.
– Bet365 and the Charlotte Hornets.
– BetMGM and the Charlotte Motor Speedway.
– DraftKings and NASCAR.
– FanDuel and PGA.
– Underdog Sports and Sedgefield Country Club.
– ESPN Bet and Quail Hollow Country Club.
It’s worth noting that North Carolina allows the state’s two tribal entities, the Catawba Tribe and The Eastern Band of Cherokee Indians (EBCI), to partner with an online sportsbook.
While the Catawba Tribe has not yet decided on a sports betting partner, Caesars has partnered with the EBCI.
In total, North Carolina allows for 13 different online sportsbooks–11 commercial and two tribal.
What does Betway’s departure mean for North Carolina sportsbooks?
For one, it means there will be one less potential operator in the state. But it’s tough to say just how much of the market Betway would have cornered since it never actually entered North Carolina.
The harsh reality is that it wouldn’t have made that much of a dent, if any, in North Carolina. With the major operators all running, it would be incredibly difficult for Betway to corner even 1-2% of the market.
This also means that North Carolina might not end up filling all of its sportsbook license spots. After all, there’s no requirement that all 11 need to be filled.
In addition to competing alongside the deep pockets of FanDuel NC and DraftKings NC, smaller operators like Betway have to deal with the expenses of entering markets.
The fee for an interactive sports betting license in North Carolina is $1 million. In addition, an operator must sign a written designation agreement with one of the professional sports entities. While the details of these agreements get hashed out behind the scenes, they don’t come cheap.
The North Carolina entities with partnerships chose them wisely. They were selective, and those without partners have no reason to do otherwise. In other words, it’s an exclusive process.
Betway might end up being yet another example of how tough it is to crack the U.S. sports betting market. But it also exemplifies that it’s a difficult, exclusive process to gain access into the North Carolina market, meaning we might not see smaller operators attempt to do the same.
Is this bad for consumers? Not necessarily. As the Betway’s of the US sports betting market exit, bettors will inevitably move to the other available books. Many will gravitate to top operators like DraftKings and Fanduel, both of which offer best-in-class products.
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