HomeMaryland Sports Betting NewsBetfred Sportsbook to Exit Maryland by End of July 2024

Betfred Sportsbook to Exit Maryland by End of July 2024

Betfred’s departure from the Maryland sports betting market, effective by the end of July 2024, underscores the competitive pressures and market dynamics that smaller operators face in a rapidly evolving industry.

Image: Betfred

Despite a strategic partnership and a well-timed entry, Betfred MD struggled to carve out a significant market share, leading to its decision to cease operations in the Old Line State.

Timeline of Closure

Betfred’s exit is staged in two phases, meticulously outlined in their press release and corroborated by the Maryland Lottery and Gaming Commission (MLGC). The retail sportsbook at Long Shot’s in Frederick, MD, stopped accepting wagers on June 9, 2024. This location remained operational until June 30, 2024, solely for the redemption of outstanding winning tickets. Post this date, customers with unsettled wagers or unredeemed tickets need to follow mail-in redemption instructions provided on the back of their betslips.

Online operations will continue a bit longer, ceasing on July 24, 2024. Betfred has urged its online account holders to withdraw their funds via the app or website by July 31, 2024. Any unclaimed balances will be mailed by check within 30 days, ensuring that customers have multiple avenues to claim their funds.

Performance and Market Share

Since its Maryland launch in November 2022, Betfred has handled $20.1 million in bets and generated $1.48 million in revenue, which translates to less than 0.5% of the market share. This modest performance pales in comparison to market leaders.

For instance, in May 2024 alone, FanDuel MD dominated with a handle of $195 million, while DraftKings followed with $137.3 million. These figures highlight the significant gap between Betfred and its competitors, a gap that likely influenced Betfred’s decision to exit the market.

New Entrants and Market Growth

Betfred’s exit paves the way for new operators to enter the Maryland sports betting market. Veterans Services Corporation (VSC) debuted on July 1, 2024, having completed a successful demonstration for the MLGC. Bally Bet is also expected to launch this month, further intensifying competition. Moreover, micro-betting platform Betr, which received initial approval from the MLGC, is awaiting final approval from the Sports Wagering Application Review Commission.

These new entrants will step into a growing market. In May 2024, Maryland’s licensed operators accepted $431.5 million in wagers, marking a 34.8% year-over-year increase. Parlays were particularly popular, with $140.9 million in bets and $104.6 million in payouts. This growth trajectory signals a fertile ground for the incoming operators.

Broader Implications for Betfred

Betfred’s exit from Maryland does not signal a retreat from the U.S. market. The company continues to operate in nine other states, with its performance in states like Arizona, Iowa, and Ohio remaining consistent with its Maryland metrics.

Across these states, Betfred has generated $4.48 million in lifetime revenue from $166 million in bets. Notably, in Ohio, Betfred’s partnership with the NFL’s Cincinnati Bengals has produced $1.91 million in revenue, despite significant promotional spending.

Betfred’s departure from Maryland highlights the fierce competition in the sports betting market and the challenges smaller operators face in gaining traction. Despite a well-structured entry and ongoing efforts, Betfred could not achieve a sustainable market share.

As new operators like VSC, Bally Bet, and Betr prepare to launch, Maryland’s sports betting landscape is set for further growth and evolution. Betfred’s experience serves as a case study in the importance of market positioning and competitive strategy in the burgeoning sports betting industry.