Arizona sportsbook SaharahBets announced on Tuesday (9 July) it would be closing in the latest US market exit.
Arizona sportsbook SaharaBets announced on Tuesday (9 July) it would be closing, marking the latest US sportsbook market exit.
The sportsbook, which was owned by Cuban-American billionaire Alex Meruelo, was one of the less successful OSB platforms.
According to the Arizona Department of Gaming, SaharaBets handled $11.4m in bets and generated just $800,000 in revenue from January to April 2024.
In a statement on X, the sportsbook said: Effective immediately, we are discontinuing the sports betting offerings at SaharaBets Sportsbook.
“Your wagering account will be accessible for the next thirty (30) days to allow time for your outstanding bets to settle and to withdraw your account balance.”
Effective immediately, we are discontinuing the sports betting offerings at SaharaBets Sportsbook. Your wagering account will be accessible for the next thirty (30) days to allow time for your outstanding bets to settle and to withdraw your account balance. pic.twitter.com/hCAjNOblRf
— SaharaBets (@SaharaBets) July 9, 2024
SaharaBets first launched in 2022 through an agreement with professional ice hockey team the Arizona Coyotes.
Arizona sports betting legislation allows sports teams, leagues and tribal operators to apply for gaming licences.
While most licence holders opted to launch in partnership with a national operator, Coyotes owner Meruelo opted to launch his own platform.
The decision to close the sportsbook came as Meruelo also relinquished rights to the Coyotes franchise.
While the sportsbook had previously outlined ambitious plans to launch in other states, these never came to fruition.
In an email to customers, SaharaBets said: “The decision was not made lightly, and we understand the impact it may have on you as a customer. We want to express our gratitude for your support throughout the years.”
Continuing market exits
SaharaBets is just the latest operator to pull out of the US sports betting market, which has been dominated by the two traditional DFS giants, FanDuel and DraftKings.
Just this week, Super Group announced its Betway brand would be exiting the market as it could not see a long-term path to profitability.
Analysts at JMP Securities said: “The two have been added to a list of companies attempting to break into the online gaming industry since the repeal of PASPA in 2018.
“The shuttering represents a dozen basis points of US market share, but over time, the exits and elevated competition have conceded ~1% sports betting market share to the top seven companies since early 2022.”
Other closed books included FoxBet, Kindred’s Unibet, TwinSpires, Barstool Sportsbook, Fubo Sportsbook, PlayUp Sportsbook, MaximBet and PointsBet.