Betway announced last month that it would end sports betting operations in the Keystone State. According to the Pennsylvania Gaming Control Board, the operator did just that on July 31. Customers’ accounts remain active because Betway is keeping its iGaming product. That means that players’ money will remain in the Betway app and can be used in the online casino or be withdrawn.
“In this case, because Betway uses a shared wallet system, there is no impact on customers,” PGCB Deputy Director of Communications Richard McGarvey told PlayPennsylvania on Wednesday.
“Even if a customer only uses the sports betting product, their wallet remains active. They can still access their account, withdraw funds, or use the funds for casino games.”
To that end, Betway’s parent company, Super Group, said it would cost nearly $50 million to shut down sports betting operations in nine states, including Pennsylvania. However, according to the PGCB, it didn’t cost Super Group a dime in the Keystone State.
Though Betway’s sportsbook has departed, it is important to remember many other PA online sports betting sites remain active.
Betway doesn’t leave PA gambling entirely, keeps iGaming accounts open
Betway did not provide a date on its Pennsylvania sports betting departure when it announced it would close up shop. However, in the midst of shuttering operations on July 31, the operator felt it was necessary to keep its iGaming platform in the Keystone State.
Super Group has a target, which it did not divulge specifically, for its Betway platform in New Jersey and the PA online casino market.
“If we do not get our net win target, then we have to reassess that those goes to market,” Super Group CEO, Neal Mensahe, said on a Q2 2024 earnings call last week.
“So, as we confirm those two markets, New Jersey and Pennsylvania are larger than Ontario and we’re going to give it a go there and then try and compete because we think that product can compete.”
Betway, along with its other brand, Jackpot City, which launched last December, is partnered with Live! Casino Philadelphia. The three platforms, Betway, Jackpot City and PlayLive! have generated nearly $30 million in revenue YTD through June, which ranks ninth out of 11 licensees.
The PGCB does not break down revenue by operator, which makes it difficult to see exactly what each platform contributes. Looking at New Jersey, which provides operator-specific information, Betway has recorded $1.8 million through June, which ranks 30th in the state.
While Mensahe did not give a specific target, he did say this on the call:
“So, we just go for having to get to a few million of revenue in each market to start making sure that that market is working. But if you’re not going to get to a few million revenue — five, six, eight, 10 — eventually your targets, then you’re never going to get to profitability.”
Since Betway is staying in Pennsylvania, for now, player’s accounts remain active.
Betway did not, and would not, have to pay PGCB if it departs entirely
The PGCB also confirmed to PlayPennsylvania on Wednesday that the operator does not have to pay a fee to the state for leaving the sports betting market. However, it is possible it would pay something to the license holder, which the PGCB could not confirm, since it would be unaware of any transaction.
Mensahe confirmed on the call that there appears to be a cost for shutting down sportsbook operations in nine states.
“In terms of costs, we estimate that the cash costs of shutting down our US sportsbook business will not exceed $50 million, the bulk of which comprises existing contract obligations and redundancy costs,” he said.
“This figure is easily manageable within our existing financial resources. We are just beginning with the exit process and will provide an updated figure of the shutdown costs in Q3.”
It does seem like Betway is able to sell licenses in certain states, which it is looking into. However, it can’t in Pennsylvania because it Live! Casino Philadelphia obtains the license. It is unknown whether or not Betway owes money to Live! Casino Philadelphia.
For now, Betway has not made a full exit out of the Keystone State, and is attempting to “give it a go” in the iGaming vertical.
