Another brand bites the dust
A sportsbook that boldly positioned itself as “the only true lifestyle brand in the industry” has become the latest casualty in the battle for US sports betting market share.
macro economic conditions.”
MaximBet USA called time on its sports betting operation on Wednesday blaming “macro economic conditions.” The Carousel Group-owned brand informed customers via Twitter of its decision to shutter:
As of Wednesday, MaximBet is no longer taking bets or deposits. The firm said its customers can withdraw their deposited balances until December 15. For customers with outstanding balances after the 15th, MaximBet will refund them via checks in the mail.
MaximBet can’t keep up
Big brands in the US sports betting industry are waging an unprecedented and unforgiving battle of attrition for market share. MaximBet is just the latest gaming operator to admit defeat after FuboTV also shuttered its online sportsbook in October.
According to Sportico, Bettor Capital managing partner Dave VanEgmond stated: “more exits and sales” are in the cards for US sportsbooks. The gaming venture capital exec added: “You need hundreds of millions, if not a billion dollars, to aggressively compete to be a major player with more than a few percent of market share in sports betting.”
MaximBet admitted as much in a statement, saying it couldn’t compete:
in a market where operating costs far exceed revenue.”
Sportico revealed investor deck figures that clearly show MaximBet’s struggles during its first six months of operation in Colorado. In total, the deck had MaximBet on $18.7m in real money handle with gross gaming revenue (GGR) at $1.8m. The gambling firm’s marketing spend of $3.7m was, however, more than double its GGR.
Ultimately, lack of access to capital spelled the end of a brand that emerged at the tailend of 2021 all bright eyed and bushy tailed. The company even appointed baseball’s Charlie Blackmon and rap superstar Nicki Minaj as brand ambassadors. Minaj served as special advisor to the sportsbook.
In a statement, MaximBet said its priority now was to “wind down operations” and help users in Colorado and Indiana get their money and close their accounts.