Betfred’s recent decision to cease operations in Arizona, following its earlier exits from Colorado, Ohio, and Maryland, signals a shift in the U.S. sports betting landscape. Despite launching with high hopes in March 2022 through a partnership with Fort McDowell Yavapai Nation, Betfred struggled to gain a foothold in Arizona’s competitive sports betting market. With the sportsbook set to close its Arizona operations entirely by November 2024, this move raises questions about the sustainability of smaller operators in the increasingly saturated U.S. market.
Arizona ranks among the top seven sports betting markets in the U.S., yet Betfred’s performance failed to meet expectations. The company’s reliance on promotions and bonuses in a market dominated by bigger players like FanDuel and DraftKings may have contributed to its struggles. With total wagers amounting to just $14 million in the first half of 2024, significantly below the state’s top performers, Betfred faced an uphill battle.
This exit is not isolated. Betfred is now the fourth sportsbook operator to leave Arizona in 2024, joining WynnBET, Unibet, and Betway. The exits raise broader concerns about the future of smaller operators in the U.S. market, where larger brands with deeper pockets and extensive resources hold the majority of market share.
For Arizona, Betfred’s exit opens the door for new partnerships. The Fort McDowell Yavapai Nation will likely seek a new operator to replace Betfred, and with the state’s sports betting market continuing to grow, the potential for new entrants remains high. However, the lesson from Betfred’s departure is clear: success in U.S. sports betting requires more than just market entry—it demands sustained investment, competitive offerings, and strategic partnerships that can weather the intense competition.
