Another US sports betting operator is calling it quits.
MaximBet sent out an email to customers Wednesday announcing it is ceasing operations. The decision comes as multiple operators have shut down online sports betting this year. The sportsbook is no longer taking bets, with withdrawals available until Dec. 15, after which balances will be mailed via check.
“It is with sincere anguish that we have informed our incredibly loyal customers that the current macroeconomic conditions have caused MaximBet to cease operations,” a statement from MaximBet said. “MaximBet launched in 2021 with a desire to bring sports, entertainment, and betting together, all inside a lifestyle brand with a complete focus on the end user. While making great strides in offering customers a completely unique player experience, our ability as an early-stage company to compete in a market where operating costs far exceed revenue, even among the top operators, is not sustainable.
“Our priority now, in consultation with state regulators, is to wind down operations and help active customers in Colorado and Indiana withdraw their funds and close their accounts.”
MaximBet shutters US sports betting
Despite owning the SportsBetting.com brand, Carousel Group rebranded to MaximBet in 2021 as a way to connect to the young adult male demographic through a partnership with Maxim magazine.
Less than two years ago, Carousel Group raised $50 million to help grow the MaximBet operation. The company brought on Nicki Minaj and MLB player Charlie Blackmon as ambassadors for the sportsbook.
In September, MaximBet launched in Indiana as its second live state, joining Colorado. Through a 10-state partnership with Caesars, MaximBet planned to roll out multiple markets in the coming months, including:
Other US sportsbooks pulling out
Earlier this year, Churchill Downs Inc. announced it was pulling TwinSpires out of online sports betting, focusing instead on its horse racing business.
Last month, FuboTV announced it was shutting down its sportsbook, pulling out of Arizona, Iowa and New Jersey. Earlier this summer, Fubo had hoped to find a partner to help continue the sportsbook experiment.
With the macroeconomic climate not friendly for raising capital and spending lavishly for customer acquisition, and the already competitive sports betting market seeing clearer leaders, there is potential for more operators to pull out of US sports betting in the coming months.
