UK based Betfair Exchange have announced they are to pull out of the New Jersey market after admitting that poor results was the reasoning behind their decision.
More Betfair Market Exits
Betfair who are owned by Flutter Entertainment, announced after the 1st October 2020 they would no longer be offering the US its services. Flutter’s merger with the Stars Group has seen the company restructuring its business globally. Flutter have also announced along with Betfair’s exit, they will be withdrawing their PokerStars product from Macau, China and Taiwan with no reasons sited. Other market withdrawals will include, Japanese, India and Russia.
No Appeal For US Customers
Betfair arrived in the NJ market back in 2015 and launched its 4NYBets company the following year. Over the next few years the company did not attract the attention the company had originally expected with only $12.4 milllion in sports betting funds.Kip Levin, US Betfair Exchange owner said, “ The online betting exchange, while very popular in the UK and other regions, unfortunately did not appeal to US customers.“ The exchange did not manage to reach the critical mass necessary to make to operation profitable and efficient. There are several reasons for our decision to withdraw from New Jersey market, including a customer base used to exotic wagers and a reluctance by major US racing associations to embrace a different business model.”Betfair pulled out of the Indian market back in 2019, after a small lobby group who were supposed to push Betfair’s arrival in the country caused a scandal. With an ever-evolving industry and much tougher competition, Flutter have thought ahead and made decisions before the inevitable happened.