he sports betting landscape in 2024: A notable trend is the exit of smaller companies from the US market.

The Sports Betting Shakeup: Consolidation and Survival in 2024

As major operators like BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics, and FanDuel continue to expand their customer bases and battle for dominance in the US sports betting market, smaller, often independent platforms are disappearing, leaving consumers with fewer choices.

This article, originally featured in the December 2024 issue of GGB Magazine, explores the shifting dynamics of the sports betting industry.

A Slower Year for Sports Betting Legislation

2024 marked the first year since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 that no new state legislatures legalized sports betting. While Missouri voters approved legalization in November, only North Carolina and Vermont launched live wagering — the lowest number of new market entries since 2018.

However, while legislative momentum has slowed, the number of wagering platforms scaling back operations or exiting the US market altogether continues to rise.

Smaller Platforms Exiting

Despite some companies like Betr, Sporttrade, and Underdog Sports finding their niche, over 20 operators have closed or downsized their US digital sportsbooks since 2020, citing difficulties in competing with industry giants. Many stated they were refocusing on their “core business” after finding profitability elusive.

In 2024, five operators either exited or significantly reduced their presence in the US:

• Betway, SI Sportsbook, and Unibet completely withdrew from the US digital wagering market.
• SuperBook and WynnBet scaled back their operations, maintaining a limited presence in Nevada.

Rising Costs and Competitive Pressures

The high cost of customer acquisition and the inability to capture market share are common reasons for these exits. For example:

• WynnBet exited eight markets in 2023 and finalized its non-Nevada operations in Massachusetts in early 2024, citing unsustainable costs.
• SuperBook’s quick expansion strategy failed to materialize as regulatory hurdles prevented its signature NFL SuperContests from launching in multiple states.
• Betway and SI Sportsbook concluded that profitability in the hyper-competitive US market was unattainable.

The Impact on Consumers and Innovation

With fewer operators in the market, consumers face limited choices, and there’s potential for innovation to stagnate. Brendan Bussmann, a consultant with BGlobal, emphasized that competition drives creativity and consumer benefits. He added, “Fewer competitors mean less pressure to innovate, which could slow progress in the industry.”

Survival Strategies for Smaller Operators

While many smaller platforms have exited, others like Betr, Sporttrade, and Underdog Sports are navigating the challenges by adopting incremental and strategic growth models:

• Betr, backed by Jake Paul, has entered two states with plans for more.
• Sporttrade offers a unique stock-market-style trading platform and operates in five states.
• Underdog Sports combines its fantasy sports success with a cautious entry into legal sports betting markets like North Carolina and Ohio.

These companies have focused on carefully selected core markets rather than attempting rapid, widespread expansion.

Looking Ahead

The sports betting industry continues to evolve, with larger operators consolidating their dominance while smaller companies seek to thrive through niche strategies. However, the competitive landscape remains tough, and the number of operators joining the “sports betting graveyard” may continue to grow.

As Bussmann summarized, “The key to survival is prioritization — knowing where you can compete effectively and focusing your resources there. Many that have exited could have survived by being more selective.”

This era of consolidation underscores the high stakes of the US sports betting market, where success demands both scale and strategy.