Betway Owner Super Group dey pack ein bags comot from USA sake of tax wahala
Chale, big news dey ground! Super Group, dem be the people wey get Betway, dey pack ein bags komot from USA. E be like the market for online casino and sports betting dey bee too much for dem sake of tax wahala.
Dem announce say dem dey close down ein iGaming business, Spin, for USA. This one dey happen just one year after dem say dem go close ein sportsbook operations for there. E be like say dem no dey see long-term profit for the USA market, especially with the way tax dey change anyhow.
According to Super Group CEO, Neal Menashe, “recent regulatory developments combined with ongoing assessment of capital allocation requirements” be the reason why dem dey komot from the iGaming market for USA. Dem expect say this move go cost dem between $30 million and $40 million.
The main problem be the “volatile state-by-state tax regimes,” especially the tax wey dem increase for New Jersey. New Jersey agree say dem go increase the tax rate for online casino and sports betting operators from 15% and 13% to 19.75%.
Menashe talk say, “This be difficult decision, especially because our U.S. team don work hard and make progress over recent quarters.”
Wahala for online betting for USA
Super Group ein komot from USA dey happen as the market for online casino and sportsbook dey bee. E be like say iGaming dey slow down, and no new states dey expected to join this year. Plus, dem dey propose gambling tax hikes for some states, and legal betting dey face competition from prediction markets.
E be like say Super Group close ein sportsbook operations for nine US states for July 2024. At that time, CEO Neil Menashe say dem no dey see long-term profit for ein US sportsbook offering. This one cost the group €32.7 million for 2024, but dem decide say dem go continue with ein iGaming offering because e dey grow for the two states wey dem dey.
Wetin be the future for Betway?
E be like say Super Group dey focus on other markets wey dey give profit. E dey important say dem make sure say dem dey stay on top of regulatory changes so dem no go face this kind of wahala again.