Betsson to Cease Betsafe Operations in Colorado by End of September 2024

Betsson, the global gaming company, has confirmed that it will be shutting down its operations under the Betsafe brand in Colorado. A spokesperson for the company told SBC Americas on Tuesday that Betsafe would cease its activities in the state by the end of September 2024.

End of Betsafe Operations

Betsson’s decision to exit the Colorado market marks the end of its B2C operations in the U.S /us-casinos/. The company has stated that it will no longer offer business-to-consumer (B2C) services in the United States, at least for the foreseeable future.

“As communicated initially, our B2C operations in Colorado served primarily to display our sportsbook for B2B purposes and to provide us with valuable first-hand insights into the dynamics of the U.S. online sports betting market,”the Betsson spokesperson explained.

Betsson’s Betsafe brand launched in Colorado in March 2022, nearly two years after the state legalized sports betting in May 2020. The company partnered with Dostal Alley Casino to gain market access and even opened an office in Denver to facilitate its operations.

Although Betsafe was a consumer-facing sportsbook, Betsson’s primary goal was to showcase its technology and sportsbook capabilities to potential B2B partners. The U.S. market was an essential opportunity for Betsson to expand its business-to-business (B2B) services.

At the launch of Betsafe, Lance Agostino, Betsson’s U.S. Director, emphasized the strategy behind the move. He explained to SBC Americas: “We knew our strengths as a large operator and what it was going to take to get into the market. We evaluated coming in as Betsson, but quickly realized that would be too costly. Instead, we decided that, first and foremost, we wanted to bring our technology over here to offer to other partners and providers.”

Agostino added that the Betsafe launch allowed Betsson to provide first-hand insights into the North American market. “One of the first questions we get asked in RFPs or procurement processes is ‘where else are we live in North America?’ So, we decided it was probably more pragmatic and faster to go ahead and get live ourselves with the Betsafe brand, so we are able to play in our own sandbox.”

Colorado’s Changing Sportsbook Landscape

Betsson’s withdrawal from Colorado is part of a larger trend of smaller sportsbook operators exiting the U.S. market. With the NFL season about to begin, Betsson’s departure follows the recent closures of other operators. Last week, Australian operator ClutchBet announced it was closing its BlueBet brand in Colorado, Louisiana, and Iowa. Superbook also declared it would be shutting down in all U.S. markets except Nevada.

Other sportsbook operators that have pulled out of Colorado recently include WynnBet, Fubo Sportsbook, Unibet Sportsbook, and Betway. These closures highlight the competitive and challenging nature of the U.S. sports betting market, where smaller operators often struggle to compete against larger, more established brands.

Despite these closures, Colorado remains a strong sports betting market, with more than a dozen active operators still competing for market share.

Betsson’s decision to end Betsafe’s operations in Colorado mirrors the evolving landscape of the U.S. sports betting industry, where small operators face increasing challenges. Though Betsafe served as a B2C sportsbook, it played a larger role in Betsson’s B2B strategy, helping the company gain valuable insights and demonstrate its capabilities. While Betsson’s exit is part of a broader trend of smaller operators leaving the U.S. market, Colorado remains a highly competitive state with numerous active sportsbooks.

Source:

”Betsson pulling its Betsafe sportsbook out of Colorado”, sbcamericas.com, September 03, 2024.