When a company walks away from the world’s largest gaming market at the peak of its own success, you know something’s seriously wrong with the system. That’s exactly what happened when Super Group, the powerhouse behind Betway and Spin, announced its complete withdrawal from the United States in July 2025, despite posting what CEO Neal Menashe called “the strongest quarter in company history.”
This wasn’t a retreat born from failure. Super Group’s second quarter revenue had just smashed internal records, driven by exceptional sports betting margins and a packed sporting calendar that sent customer deposits soaring. The company even raised its global revenue guidance to over $2 billion and boosted its adjusted EBITDA forecast above $480 million. Yet they’re packing up and leaving America entirely.
The decision represents a seismic shift in how gaming operators view the American market. What was once seen as the promised land of legalized sports betting has become a regulatory minefield where even successful companies can’t see a path to sustainable profits.
The United States sports betting landscape resembles a chaotic patchwork quilt rather than a coherent national framework. Since the Supreme Court struck down PASPA in 2018, individual states have created their own rules, tax structures, and compliance requirements. What emerged isn’t regulation – it’s regulatory chaos.
Consider the tax rate variations alone. While Nevada maintains a relatively modest 6.75% tax rate, New York hammers operators with a crushing 51% levy on gross gaming revenue. New Jersey, where Super Group operated its Spin online casino, recently jacked up tax rates from 15% to 19.75% – a move that directly contributed to the company’s exit decision.
Pennsylvania takes an even more aggressive approach, taxing online slots at 54% while maintaining a 16% rate for table games and poker. These aren’t minor administrative fees; they’re revenue-crushing burdens that make sustainable operations nearly impossible for mid-sized operators.
The situation has only worsened in 2025. Louisiana bumped its sports betting tax from 15% to 21.5%, Maryland increased theirs from 15% to 20%, and Illinois now charges up to 50 cents per individual wager on top of percentage-based taxes. Each state operates as its own fiefdom, creating compliance nightmares and unpredictable cost structures.
This fragmented approach contrasts sharply with more mature markets. In the United Kingdom, operators deal with a single national framework. Canada’s provinces coordinate their approaches, with Ontario successfully launching a competitive market that attracts international operators.
Super Group’s story reads like a masterclass in international expansion done right – everywhere except America. The company emerged when Betway launched in 2006 as a British gambling startup operating out of Malta. Founded with a vision to deliver world-class online entertainment, Betway quickly established itself across regulated markets worldwide.
The transformation accelerated when Super Group went public through a SPAC merger in January 2022, listing on the New York Stock Exchange under ticker SGHC. Today, Super Group operates two primary brands: Betway, focusing on sports betting and gaming, and Spin, offering multi-brand online casino experiences including Jackpot City.
Betway has become synonymous with premium sports betting globally, holding licenses from the UK and Malta to South Africa and Argentina. Its partnership deals with major sports organizations, including West Ham United, the National Hockey League, and Formula One’s Williams Racing team, demonstrate the brand’s international reach.
Under CEO Neal Menashe’s leadership, Super Group has consistently prioritized sustainable growth over rapid expansion. The company’s financial performance reflects this strategic approach. First quarter 2025 revenue hit a record $517 million, representing 25% year-over-year growth. More impressively, adjusted EBITDA more than doubled to $111 million, demonstrating the company’s ability to combine scale with profitability.
Super Group’s American experience illustrates a fundamental problem with the US gaming market: you can win and still lose money. The company’s US operations covered all costs except marketing, which CEO Menashe identified as the primary financial drain. In an industry where customer acquisition costs can reach hundreds of dollars per player, marketing expenses often determine the difference between profit and loss.
The math simply doesn’t work in many US states. Marketing costs in major markets routinely consume 20-25% of gross revenue. Add Pennsylvania’s 54% tax rate on online slots, and operators are essentially paying 74-79% of their revenue in combined marketing and tax expenses before accounting for operational costs, payment processing, and regulatory compliance.
These dynamics explain why Super Group’s US operations generated losses even as the company thrived globally. The one-time cash restructuring cost of $30-40 million associated with their US exit pales in comparison to the long-term losses they would have faced by remaining in the market.
Contrast this with Super Group’s African operations, where CEO Menashe noted that “every bit of extra revenue is super, super, super profitable”. Africa now represents Super Group’s fastest-growing and most profitable region, generating $203 million in revenue with nearly 40% year-over-year growth. The regulatory environment in African markets tends to be more operator-friendly, with reasonable tax rates and clearer compliance frameworks.
While the US market has become increasingly hostile to mid-sized operators, other regions are rolling out the red carpet for responsible gaming companies. Super Group’s strategic pivot toward high-yield markets reflects a broader industry trend where operators seek stable, profitable jurisdictions over headline-grabbing American expansion.
Africa represents the most compelling growth story. The continent hosts 13 of the world’s 20 fastest-growing economies, creating expanding middle classes with disposable income for entertainment. Super Group’s CFO Alinda Van Wyk highlighted the favorable economic backdrop, noting that the company’s 15 years of experience dealing with diverse regulatory environments across Africa has become a significant competitive advantage.
The company operates across multiple African markets and has aggressive expansion plans. CEO Menashe revealed intentions to launch in Ethiopia, Ivory Coast, and Angola, building on successful recent entries into markets like Botswana. The technology infrastructure supports around 150 different banking integrations across Africa, demonstrating the company’s commitment to localized solutions.
Canada’s regulatory framework offers another model for sustainable growth. Alberta passed Bill 48 (the iGaming Alberta Act) in May 2025, creating a pathway for commercial online gambling similar to Ontario’s successful model. The province expects to launch its regulated market by Q1 2026, with Super Group positioned as a potential early entrant.
These international opportunities aren’t just theoretical. Super Group’s ex-US revenue is expected to exceed $2.0 billion in 2025, up from previous estimates of $1.925 billion. The company’s adjusted EBITDA guidance increased from $457 million to over $480 million, demonstrating robust profitability outside American markets.
Super Group’s departure signals broader problems within the American sports betting ecosystem. They’re not alone in reassessing US operations; several operators have either scaled back significantly or exited entirely as regulatory costs spiral upward.
The competitive landscape increasingly favors massive operators with deep pockets who can absorb the marketing and regulatory costs that crush smaller players. DraftKings and FanDuel dominate most state markets, not necessarily because they offer superior products, but because they can afford the astronomical customer acquisition costs required to compete.
This market concentration hurts consumers through reduced choice and potentially higher prices. When only the biggest operators can survive, innovation suffers and players lose access to diverse gaming experiences. Super Group’s Betway brand offered different betting markets and user experiences compared to American giants, representing exactly the kind of competition that healthy markets require.
American operators defending the current system often point to rapid revenue growth as evidence of success. But revenue growth means little if it’s not sustainable or profitable. The US sports betting market generated approximately $150 billion in wagers during 2024, yet many operators struggle with profitability despite this massive handle.
The global sports betting and iGaming markets are experiencing unprecedented growth, but this expansion is happening primarily outside the United States. Industry analysts project the worldwide sports betting market will reach $77.18 billion in 2025, growing at a 5.30% CAGR through 2029 to hit $94.89 billion.
The broader iGaming market presents even more dramatic growth potential. Valued at approximately $85 billion in 2023, projections suggest it could reach $275 billion by 2034, representing a tripling of market size within a decade. This growth is driven by increasing internet penetration, mobile technology adoption, and regulatory liberalization in key markets worldwide.
However, the United States risks being left behind in this global expansion. While American markets generated significant handle volume, the combination of punitive tax rates, fragmented regulations, and high operational costs is driving international operators toward more business-friendly jurisdictions.
Mobile gaming now accounts for over 70% of all online gambling revenue, with approximately 300 million users worldwide. Asia-Pacific represents the largest regional opportunity, accounting for over 45% of global iGaming market share. Super Group’s strategic focus on Africa positions them well to capitalize on the fastest-growing regional market.
Super Group’s strategic withdrawal from the United States offers several crucial lessons for the gaming industry, regulators, and investors. Most importantly, it demonstrates that market size alone doesn’t guarantee success if the regulatory environment destroys profitability potential.
The company’s decision validates a growing industry consensus that sustainable, profitable growth trumps headline expansion into high-profile markets. Super Group chose long-term value creation over short-term publicity, a decision that their shareholders appear to support given the positive analyst reactions and raised price targets following the announcement.
For other gaming operators, Super Group’s experience provides a roadmap for international expansion. The company’s success in Africa, Canada, and Europe demonstrates that focusing on business-friendly jurisdictions with reasonable regulatory frameworks can generate superior returns compared to fighting for market share in hostile environments.
State regulators should pay attention to these market dynamics. The goal of sports betting legalization was supposedly to create regulated, competitive markets that generate tax revenue while providing consumer protections. If the regulatory framework drives away responsible operators, it fails on multiple levels.
The gaming industry is rapidly globalizing, and companies that adapt quickly to changing regulatory landscapes will outperform those that remain focused on legacy markets with deteriorating conditions. In environments with stifling regulations, some emerging niches such as VPN-friendly crypto casinos are thriving.
Super Group’s bold strategic pivot may well be remembered as a prescient move that positioned them for long-term success in a rapidly evolving global marketplace.
