Super Group has officially announced the withdrawal of its Betway brand from the Portuguese market. The decision, confirmed on a recent Friday following regulatory approval, marks a strategic move to concentrate on markets with greater growth potential. Betway had been operating in Portugal since 2020, but the company has shifted its focus to regions projected to offer higher returns, such as Africa. This change comes as Super Group’s license in Portugal was due for renewal this year. The company had joined Portugal’s betting industry trade body, APAJO, in 2021 but decided after a comprehensive review to relinquish its license.
The company, however, has not disclosed whether additional market exits are imminent. This strategic withdrawal is part of a broader pattern for Super Group, which exited the U.S. market last year due to regulatory changes affecting its long-term profitability projections. During an investor day in September, Spencer McNally, head of data and analytics at Super Group, explained that although their financial models projected potential profitability in the U.S. by 2027, the market did not meet their return on capital requirements. This indicates the company’s rigorous approach to capital allocation.
The departure from the U.S. followed a similar exit from India in 2023, which was prompted by the introduction of a new online gambling tax rate set at 28% of turnover. Kevin Kovarsky, Betway COO, described the withdrawal from India as a difficult decision that initially impacted revenue and profits but was ultimately seen as advantageous. CEO Neal Menashe elaborated on the company’s exit strategy, emphasizing the importance of balancing customer acquisition costs with retention profits to maintain profitability.
Amidst these strategic withdrawals, Super Group reported a robust performance in Europe during the third quarter. The company recorded a 46% increase in European revenue compared to the previous year, with notable growth in the UK at 71% and Spain at 11%. Europe contributed to 20% of Super Group’s Q3 revenue, an increase from 17% in the same quarter of 2024. Menashe attributed this growth to stable regulations, product advancements, and effective marketing strategies.
Looking forward, Super Group’s decision to exit Portugal underscores a meticulous approach to market selection, aligning resources with regions that promise better returns. Although the company has not detailed further withdrawals, this pattern suggests a continuing emphasis on optimizing market presence based on financial performance and regulatory environments. The focus remains on navigating complex global markets with strategic prudence, as Super Group evaluates its next moves in the global iGaming landscape.