MaximBet pulling out of US Sports Betting

Finance News

MaximBet has shuttered operations, becoming the latest U.S. sportsbook to shutter its business in the face of mounting costs.

The gaming operator, owned by Carousel Group in partnership with Maxim magazine, said in a statement that it made the decision due to “macro economic conditions.” The company had delays in its new tech stack, which it announced in January but didn’t debut until September, and struggled to differentiate itself in a market increasingly dominated by operators with deeper pockets and more tolerance for losses.

MaximBet has ceased operations, becoming the latest U.S. sportsbook to shutter its business in the face of mounting costs.

The gaming operator, owned by Carousel Group in partnership with Maxim magazine, said in a statement that it made the decision due to “macro economic conditions.” The company had delays in its new tech stack, which it announced in January but didn’t debut until September, and struggled to differentiate itself in a market increasingly dominated by operators with deeper pockets and more tolerance for losses.

“Our ability as an early-stage company to compete in a market where operating costs far exceed revenue, even among the top operators, is not sustainable,” the company said. “Our priority now, in consultation with state regulators, is to wind down operations and help active customers in Colorado and Indiana withdraw their funds and close their accounts.”

MaximBet was looking to raise money earlier this year, according to multiple people familiar with the company’s plans, though it’s unclear if the group was successful. An investor deck that was viewed by Sportico detailed the company’s first six months in operation, all in Colorado. In total, the deck says MaximBet had $18.7 million in real money handle (total handle minus free bets and bonuses), with marketing spend ($3.7 million) more than double gross gaming revenue ($1.8 million).

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