Another US sports betting operator is shutting down.
MaximBet announced via email to customers on Wednesday that it is ceasing operations. This decision follows a trend of several operators closing their online sports betting platforms this year. The sportsbook has stopped taking bets, and customers can withdraw their funds until December 15; after that, remaining balances will be mailed via check.
"It is with sincere anguish that we inform our incredibly loyal customers that the current macroeconomic conditions have led MaximBet to cease operations," the statement from MaximBet said. "Launched in 2021, MaximBet aimed to integrate sports, entertainment, and betting within a lifestyle brand focused on the end user. Despite significant efforts to offer a unique player experience, our ability as an early-stage company to compete in a market with operating costs surpassing revenue, even among top operators, has proven unsustainable."
"Our current priority, in consultation with state regulators, is to wind down operations and assist active customers in Colorado and Indiana with withdrawing their funds and closing their accounts."
MaximBet Shutters US Sports Betting
Carousel Group, which owned the SportsBetting.com brand, rebranded as MaximBet in 2021 to target young adult males through a partnership with Maxim magazine.
Less than two years ago, Carousel Group raised $50 million to expand MaximBet, enlisting Nicki Minaj and MLB player Charlie Blackmon as brand ambassadors.
In September, MaximBet launched in Indiana, its second state after Colorado. The company had planned to expand into additional markets through a 10-state partnership with Caesars, including:
- Iowa
- New Jersey
- Pennsylvania
- Ohio
- Ontario
Other US Sportsbooks Pulling Out
Earlier this year, Churchill Downs Inc. decided to exit online sports betting with TwinSpires, refocusing on its horse racing business.
Last month, FuboTV announced the closure of its sportsbook, exiting Arizona, Iowa, and New Jersey. Earlier in the summer, Fubo had been seeking a partner to continue its sportsbook venture.
With the current macroeconomic climate challenging for raising capital and the sports betting market becoming increasingly competitive, more operators may withdraw from the US sports betting industry in the near future.