CEO of Smarkets Jason Trost has announced the London-based betting exchange will “temporarily pause” its US expansion.
Explaining the reason the the move, Trost referenced “the challenges present” in Smarkets’ international expansion during 2022. Smarkets acknowledged its drop in revenue and gross profit in its fiscal accounts for the year. In its statement to Companies House, the firm disclosed a 10% drop in revenue; going from £20m ($24m) in 2021 to £18m ($22m) in 2022.
Smarkets said there may be a need for additional funding
According to EGR Global, Smarkets also faces a £12.8m ($15.6m) tax bill, which it disclosed liability of in its annual report and financial statements. Smarkets said there may be a need for additional funding.
The CEO stated that despite the timeout, it was “not goodbye to the American market.” Trost stated Smarkets’ narrower focus for 2023 would revolve around product development, adding that his brand was “committed to re-engaging with better and stronger product.”