Super Group (SGHC) Limited, the parent of global online gaming brands including Betway and Spin, has made the strategic decision to step back from the United States iGaming space. Despite achieving what is expected to be the company’s strongest quarter to date, leadership has cited significant shifts in the American regulatory landscape and long-term profitability concerns as reasons for the exit.

CEO Neal Menashe acknowledged the progress made by the company’s U.S. division in a press release, stating, “This is a difficult decision, particularly because our U.S. team has worked hard and made progress over recent quarters.” However, he emphasized that “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.”

These regulatory shifts include increased tax burdens in key jurisdictions. New Jersey, for instance, has raised its iGaming tax rate from 15% to 19.75%, a move that is expected to significantly impact margins. Coupled with high licensing costs in other states like Ohio and Michigan, where fees reach tens of millions of dollars, the commercial viability of operating in the U.S. has become less tenable for Super Group.

The company had previously ceased operations of its Betway sports betting brand in the U.S. in July 2024, withdrawing from the nine states it was operating. One year ago the company said it would like to focus on its iGaming operations in the United States, with the CEO saying: “The vast majority of Super Group’s revenue is generated in iGaming and, in line with that strategy, we will continue to offer our leading casino product in New Jersey and Pennsylvania.” Despite continuing to operate Jackpot City and, more recently, Spin Casino in New Jersey and Pennsylvania, the group now plans to completely withdraw from the U.S. iGaming sector.

Restructuring Costs and Strategic Options

According to CFO Alinda Van Wyk, the exit will come with a one-time cash restructuring cost projected between $30 million and $40 million. She confirmed that several exit strategies are under active review, though the process remains in early stages.

“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,” Van Wyk noted. Additional financial details and clarifications are expected when Super Group delivers its Q2 earnings report in August.

Savings from the restructuring are anticipated to begin materializing in 2026.

Ex-U.S. Operations Drive Record Performance

While winding down in the U.S., Super Group is seeing strong momentum globally. The second quarter of 2025 is poised to be the most successful in the company’s history, thanks to robust performance in core international markets. Contributing factors included a full calendar of sporting events, improvements in pricing strategy, enhanced risk management, and consistent customer engagement across both casino and sports betting platforms.

The group has revised its 2025 financial forecast upward, now expecting revenue excluding the U.S. to surpass $2.0 billion—up from a previous estimate of $1.925 billion. Likewise, adjusted EBITDA is now forecast to exceed $480 million, compared to earlier guidance of $457 million.

CEO Menashe emphasized the strategic focus on core markets, stating, “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.”

Most of Super Group’s revenue in North America is now coming from Canada, with African markets recently overtaking North America as the company’s largest revenue contributor.

Looking Ahead: Investor Day and Long-Term Vision

Super Group plans to unveil a more detailed strategic roadmap during its upcoming Investor Day scheduled for September 18, 2025, in London. The event will include deeper insights into its long-term vision, operational priorities, and how resources will be reallocated following the U.S. withdrawal.

With this move, Super Group joins a growing list of international operators—such as Tipico, Unibet, and WynnBet—that have either scaled back or fully exited the complex and costly U.S. online gambling landscape. The company’s decision underscores the increasing difficulty for international brands to achieve sustainable growth in a market where tax and licensing structures often hinder long-term profitability.