New York-listed operator Super Group intends to exit the United States iGaming market as part of an ongoing strategic review to streamline operations and enhance long-term shareholder value.
Having shut down its US online sportsbook operations last year, the company now intends to exit the US iGaming market, citing recent regulatory shifts impacting long-term expected profitability.
Super Group will incur a one-time restructuring cash cost related to the anticipated US iGaming exit of between $30 million to $40 million, with cost savings expected to begin in 2026.
“This is a difficult decision, particularly because our US team has worked hard and made progress over recent quarters,” said Super Group CEO Neal Menashe. “Nonetheless, recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon.
“We therefore intend to focus capital and resources on markets where we see the greatest opportunity for scalable, sustainable, profitable super growth, with a disciplined emphasis on operational efficiency.”
Super Group chief financial officer Alinda Van Wyk added: “Various strategic exit options are under consideration. We are still early in the process but nonetheless would expect to incur a one-time cash restructuring cost of approximately $30 million – $40 million in connection with such an exit and are actively pursuing multiple efforts to minimize the impact thereof. Further details regarding these potential costs will be shared during our second quarter earnings release.”
Super Group also provided an update on its second quarter performance, which is expected to be the strongest quarter in its history, with solid revenue growth across all markets, driven by strong sports results and record deposits.
As a result, the company has raised its guidance for 2025 with total revenue (excluding US) expected to exceed $2 billion, up from its previous guidance of $1.925 billion. Adjusted EBITDA is now expected to be in excess of $480 million, compared to its previous guidance of $457 million.
“We are very pleased with our performance in the second quarter, reflecting continued momentum and discipline across our core markets and further validating the strength of our operating model and brands,” said Menashe. “We remain focused on driving profitable and sustainable growth through consistent execution and continue to be super-confident in the long-term growth potential of our business.”
In the first quarter of 2025, Super Group’s revenue from North America increased by 18 per cent to $181 million, comprising Spin revenue of $142 million and Betway revenue of $39 million.
Super Group currently operates two iGaming brands from its Spin portfolio, including Jackpot City, in both New Jersey and Pennsylvania.
Shares in Super Group Ltd (NYSE:SGHC) were trading marginally lower at $11.38 per share in New York earlier Tuesday.