Betfred Leaves Another Sports Betting Market With Virginia Announcement

Betfred has announced its decision to cease operations in the state of Virginia, creating speculation about its long-term plans for the US market.

Betfred has said that its online sportsbook will no longer be accepting deposits, wagers, or new registrations in Virginia as of October 21st. Existing players in the state have been given a grace period until 10 PM ET on the same date to withdraw any remaining balances from their accounts. The latest exit now from the Virginia market has raised questions about the company’s broader strategy for its US business.

The news of Betfred’s departure from Virginia comes amidst a series of similar announcements from the company in recent months. In July, the sportsbook halted its operations in Maryland, citing the challenges it faced in gaining a significant market share in the state. This was followed by the suspension of its services in Colorado and Ohio the very next month.

Betfred’s struggles to establish a strong foothold in the US sports betting market have been well-documented. In Ohio, the company cited the difficulty in securing a substantial market share as one of the primary reasons for its departure. Additionally, the recent tax increase in the state was identified as a significant obstacle, further eroding the company’s revenue.

The company’s exit from Maryland was particularly noteworthy, as it came less than a year after its initial launch in the state. Figures released earlier this year revealed that Betfred had handled less than $500,000 in Maryland, lagging behind its competitors and ranking as the 10th most popular sportsbook among the state’s 12 legal operators.

The wave of recent departures has left Betfred with a significantly reduced presence in the US sports betting market. As of now, the company’s online sportsbook operations are limited to just three states: Arizona, Iowa, and Pennsylvania. However, this number is set to further dwindle, as Betfred has also announced its plans to cease operations in Arizona on November 4th.

While Betfred’s online sports betting ventures have faced challenges, the company does maintain a presence in the US through its retail sportsbook operations. Currently, Betfred has physical sportsbook locations in Louisiana, Nevada, and Washington State.

Kresimir Spajcic, the CEO of Betfred USA, has previously hinted at the possibility of a full US exit, should the company’s profitability in the market prove inadequate. In an interview earlier this year, Spajcic acknowledged the difficulties in creating a sustainable business model, stating, “The question is: can you make a business profitable enough to make sense to continue operating in the U.S. versus putting this effort and investment elsewhere that might yield a bigger return?”

Despite the recent wave of departures, Betfred remains committed to exploring new opportunities in the US market. Spajcic has revealed that the company is engaged in the negotiation of several different deals that could potentially boost its presence in select states. The CEO expressed optimism, stating, “By the end of the year, we are going to know where all these deals that we are trying to negotiate are going.”