UK gaming brand Betfair announced its withdrawal from the New Jersey (NJ) betting market due to disappointing financial results.
Betfair, a subsidiary of Flutter Entertainment, will no longer offer its services to consumers in the United States as of October 1. This is part of Flutter’s global restructuring efforts, following its merger with The Stars Group earlier this year.
In addition to Betfair’s departure from the market, Flutter said it would withdraw its PokerStars brand from Macau, Taiwan and China, but did not list any specific reasons for the decision. It also announced the withdrawal of the Russian and Japanese markets, as well as the Indian market, citing significant competition.
According to the owner of the US Betfair Exchange, Kip Levin, the online betting exchange, while very popular in the UK and elsewhere, has not appealed to US consumers.
“The exchange failed to reach the critical mass necessary to make the operation profitable and efficient,” said Levin in a note.
“There are a number of reasons for this decision to withdraw us from the New Jersey market, including a customer base accustomed to exotic bets and a reluctance by major U.S. racing associations to adopt a different business model.”
In addition to market resistance, Betfair was unable to enter into deals with key players such as Churchill Downs, Del Mar, Keeneland, Stronach Group and NYRA.
