Betsson Group has confirmed its decision to pull out of the U.S. online sports betting market, discontinuing its B2C operations by the end of September 2024. This move marks the end of Betsson’s direct-to-consumer offerings in the U.S., after a brief foray into the American market through its Betsafe brand, which launched in Colorado in partnership with Dostal Alley Casino.
Initially touted as a key component of Betsson’s strategy, the Betsafe sportsbook app was designed to give the company a foothold in the competitive U.S. online sports betting space. However, in hindsight, the venture appears to have served a different purpose—acting primarily as a showcase for Betsson’s sportsbook technology to attract B2B clients rather than building a long-term B2C presence in the U.S.
In today’s announcement, a spokesperson for Betsson reiterated that the B2C operation in Colorado was always intended to serve as a demonstration of its sportsbook capabilities. The insights gained from operating in the U.S. market will be used to fine-tune its B2B strategy, as Betsson looks to pivot away from direct consumer engagement in the region.
This decision to exit the U.S. may come as a surprise to some, given the aggressive expansion of sports betting across multiple states and the growing competition among operators to capture market share. However, Betsson’s exit highlights an important consideration for international brands entering the U.S.: the market’s unique dynamics and high costs of customer acquisition can be daunting for even well-established companies. For Betsson, the costs of competing directly with giants like DraftKings, FanDuel, and BetMGM may have outweighed the benefits of maintaining a B2C presence, especially when the focus was always more about bolstering its B2B credentials.
Despite pulling out of Colorado, Betsson maintains a strong foothold in North America, particularly in Ontario, Canada, where it launched its B2C operations in 2022. The Canadian market, especially in Ontario, is shaping up to be a promising landscape for operators like Betsson, with its regulatory framework and market structure offering a more familiar and navigable environment for European-based companies. In Ontario, Betsson’s Betsafe brand offers a comprehensive suite of sports betting and online casino services, positioning the company as a prominent player in the province’s growing gaming industry.
While Betsson’s U.S. exit may seem like a retreat, the company’s broader strategy appears to be focused on doubling down on its B2B offerings. By leveraging its expertise and sportsbook technology, Betsson could find more success in partnering with U.S. operators rather than competing head-to-head in a saturated B2C landscape.
The decision to focus on B2B also aligns with Betsson’s recent moves in other areas, such as its multi-year global betting sponsorship with Premier Padel, aimed at enhancing the fan experience at the Qatar Airways Premier Padel Tour. These strategic partnerships underscore Betsson’s intent to position itself as a premium technology and solutions provider in the global gaming market, rather than a direct competitor in every region.
Betsson’s pivot could be viewed as a pragmatic response to the unique challenges of the U.S. market, where the costs of brand-building and customer retention are notoriously high. By focusing on its strengths—technology and B2B services—Betsson may be able to carve out a more sustainable niche in the gaming ecosystem without the immense pressure of acquiring and retaining a direct consumer base.
Looking forward, Betsson’s departure from Colorado is unlikely to significantly dent its overall North American ambitions. Instead, it signals a recalibration of priorities. As more operators flood into the U.S. market, Betsson’s strategic shift might even prove to be a savvy move, allowing the company to focus on building lucrative B2B partnerships and expanding its presence in less competitive, but equally lucrative, markets like Ontario.
In an industry where agility and adaptability are key, Betsson’s exit from the U.S. B2C scene could mark the beginning of a new chapter—one in which the company positions itself as a behind-the-scenes powerhouse, providing the technology and tools that drive the successes of other operators across the U.S. and beyond.
