Super Group Exits US iGaming Market as Jackpot City and Spin Shut Down
Super Group has pulled the plug on its US online casino brands, Jackpot City and Spin Casino, joining a growing list of operators abandoning the market. With rising tax rates, limited access, and fierce competition, the American online gaming marketplace is losing its shine.
Key Facts:
- Super Group has decided to exit the US online casino markets.
- Despite record quarterly profits, the company saw no path to long-term profitability.
- The company’s sports betting unit, Betway, exited the US market in 2024.
- Super Group will incur an estimated one-time charge on Q3 earnings of $35 million.
The online casino business in the US remains one of the most tightly regulated and fiercely competitive markets anywhere in the world. And now, two more brands have officially called it quits. Super Group, owner of Jackpot City and Spin Casino, has decided to exit the US market entirely.
While seven US states currently offer legal online casino gaming, each has its own unique set of significant challenges. Delaware and Rhode Island operate under monopoly models.
Connecticut only allows a single skin per tribal operator.
That leaves Michigan, New Jersey, Pennsylvania, and West Virginia as places where competition is permitted but profitability is far from guaranteed.
In New Jersey, nearly 30 operators compete, but just three, DraftKings, FanDuel, and BetMGM (along with Borgata) rake in over 65% of the market share.
Michigan tells a similar story: just 15 licensed operators generated $2.4 billion in online casino gross receipts in 2024, with those same three dominating.
Pennsylvania may be the toughest market of all. It combines a staggering 54% tax rate on online slot revenue with a flood of competition.
Not only from the 21 licensed online operators and 17 retail casinos, but also an estimated 70,000–90,000 grey-market skill games are peppered across convenience stores, restaurants, and bars throughout the state.
These machines are largely untaxed and unregulated but siphon off significant gambling spend in the Keystone State.
And while a tax rate over 50% would be onerous enough under the best of circumstances, having nearly a 100,000 untaxed “gas station bandits” competing for wallet share can’t help.
Crowded Markets Meet Crushing Margins
While competition is to be expected in newly developing, lucrative markets, state governments moving the goalposts halfway through is not.
New Jersey, long viewed by many as the crown jewel of US iGaming, recently passed new legislation that raised the online casino tax rate from 15% to 19.75%, a whopping 31% increase.
For companies like Super Group, whose remaining US focus was online casino gaming rather than sports betting, an increase of that size hit particularly hard.
However, similar tax hikes in the sports betting world were sort of the theme of the 2025 legislative session. Illinois passed a similar package, introducing a tiered system that taxes top-grossing sportsbooks at rates up to 40%. Maryland, Louisiana, and others have followed suit or introduced new tax hikes of their own.
Super Group’s Betway also cited the cost of rising taxes when they exited the US sports market last year and the runaway costs of licensing. Some States, like Ohio, require an upfront license fee of $2.5 million, with annual renewals exceeding $500,000.
Which, for a company already competing with the likes of FanDuel or DraftKings, leaves next to no room for missteps, let alone any kind of meaningful marketing.
In this environment, Super Group saw little upside, as CEO Neal Menashe cited the lack of regulatory clarity, volatile tax rates, and better ROI potential in other markets as reasons for the exit. And they aren’t alone. WynnBet, Tipico, and Sports Illustrated Sportsbook have also withdrawn from US operations.
The US may still represent a multibillion-dollar market, but entrenched operators with deep pockets and nationwide reach increasingly dominate it.
For smaller or mid-tier brands, rising costs, limited promotional flexibility, and growing Responsible Gaming and KYC burdens are turning what was once billed as the next great gambling gold mine into a costly and difficult-to-predict regulatory gauntlet.
Until we see more regulatory vision and thoughtful tax policy, more operators are likely to follow Super Group’s lead and exit stage left.
