Betsson Becomes the Latest Sportsbook to Exit the US Market

Betsson has joined the growing list of sportsbook operators leaving the US market, as the Swedish gaming company announced on Wednesday. Betsson had been offering online sports betting in Colorado under its Betsafe brand for two and a half years through a partnership with Dostal Alley Casino, but it will cease operations at the end of this month. Colorado was the only US state where Betsson operated, launching there two years after the state legalized sports betting.

The company explained that its goal with Betsafe was to gain insights into the US sports betting market and promote its business-to-business (B2B) technology offering, which will remain operational even after its consumer-facing business is closed. Before launching in Colorado, Betsson executives highlighted that potential B2B clients often asked about their presence in North America, making it logical for the company to establish a foothold in the US. Betsson also expanded Betsafe to Ontario, Canada.

Betsson Joins List of Colorado Exits

Colorado became an attractive market for sportsbook operators due to its favorable tax rate and the large number of competitors. Today, it’s one of the fastest-growing sports betting markets in the US. However, similar to other states, the market is dominated by major players such as DraftKings and FanDuel, despite the presence of over a dozen operators.

In recent months, several gaming companies have exited the US sports betting scene, including in Colorado. In addition to Betsson, operators like Betway, BlueBet, and ClutchBet have also announced their withdrawal from the US. Westgate’s SuperBook recently said it would stop offering mobile sports betting outside of Nevada, effectively pulling out of Colorado as well.

Betsson: The Latest «Victim» of the US Market

Since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), certain trends have emerged that explain why so many operators have left the US sports betting market. One challenge is the significant financial investment required to attract and retain customers. Additionally, brand recognition plays a crucial role, and companies that are successful in Europe often struggle to gain traction in the US. Betsson, well-known in Sweden and across Europe, is a prime example of this.

Other recent exits by foreign operators from the US market include Betfred, Betway, PointsBet, and Tipico, either through acquisitions or closures of their US operations.