BetFred May Close Virginia Online Sportsbook

BetFred is contemplating whether to close their Virginia online sportsbook operations, according to a report from PlayViriginia.

The move, which has yet to be finalized, is part of a growing, if potentially, troubling trend for the industry. As the popularity of online sports betting in the United States continues to rise, we are starting to see more operators closing their doors.

It is a counterintuitive trend on its face. If sports betting in the USA is so popular, shouldn’t licensed operators be afforded a certain level of security? Apparently not. And it all comes back to the battle over market share.

To that end, should we expect BetFred to close their Virginia online sportsbook? And why are they potentially choosing to leave the Mother of States specifically? Or is this part of a larger possible exit? And then, of course, what exactly is happening with all the recent sportsbook closures in the United States? Are more on the way?

Let us now break it all down, together.

BetFred Not Just Thinking About Closing Their Virginia Online Sportsbook Operations

As it turns out, BetFred may close more than just their Virginia online sportsbook operations. The decision to leave the Commonwealth is part of a larger consideration to entirely exit the United States online sports betting market. In fact, BetFred has already started closing some of their doors. Here is Adam Hensley from PlayVirginia with more:

“Betfred is considering exiting the US sports betting industry, which would mean closing its sportsbook in Virginia. The small operator has departed three states over the last two months as it weighs its options. One of those options could be to leave the US entirely. Betfred USA CEO Kresimir Spajic told EGR North America that it all boils down to whether the company can be profitable in the US. ‘I truly believe that my team and I can create a sustainable business,’ he explained. ‘The question is, can you make a business profitable enough to make sense to continue operating in the US versus putting this effort and investment somewhere else that might yield a bigger return? In other states, we are doing the same that we’ve been doing in Maryland and Ohio, trying to basically reassess our position, renegotiate some of the old agreements, and seeing if we can find a sustainable and profitable path.’”

Spajic went on to say that the company would like to keep at least some of its operational arms in the United States. But he also noted they are preparing for the full-on exodus that Hensley references. “It’s on the table as well,” he said, “if we don’t have enough value that we can create within the US.”

How Much Will Virginia Online Sports Betting be Impacted by a Potential BetFred Closure?

At first glance, Virginia online sportsbooks closures are broken down from the wrong angle. People automatically assume it is an indictment of online sports betting in Virginia. Really, though, this is a BetFred problem. To be more specific, this is a smaller-sportsbook problem.

Online sportsbooks in the United States such as DraftKings, BetMGM, FanDuel and Caesars continue to dominate the market share. They are so popular, so ubiquitous, with so many resources, that it has become difficult for smaller and newer entrants to generate enough consistent business to compete with them.

Framed in those terms, of course, this isn’t just a BetFred sportsbook problem. It is a sports betting in the USA dilemma.

There is more to unpack here. And we will. But Virginia online sports betting specifically should not reel too much from a prospective BetFred closure. The United Kingdom sportsbook accounts for an incredibly small market share in the state. If they close, the Virginia online sportsbook handle may not even feel the departure. Perhaps there will be some sputtering early on. But with so many other options at customers’ disposal, the overall popularity of sports betting in the Commonwealth should barely change.

The BetFred Sportsbook Closure Speaks to a Larger Issue with Which the Industry May Need to Grapple

BetFred sportsbook has already shuddered operations in three states. Most recently, they punted on offering online sports betting in Arizona. They are still active in a handful of states, including Virginia, Maryland, Ohio and Pennsylvania. They also continue to operate retail sports betting locations in Louisiana, Nevada and Washington.

From the sounds and looks of things, though, the company doesn’t expect many, if any, of these operations to continue for much longer. And if and when BetFred sportsbook closes in the United States, they will join a growing list of other operators to do the same.

Most notably, four Ohio online sportsbooks have shut down during the 2024 calendar year alone. That’s a massive number for one of the United States’ top 10 sports betting markets. What’s more, the list of online United States sportsbooks to close down overall features a wide variety of recognizable names. Here’s the full list:

Barstool Sportsbook
FoxBet
Fubo Sportsbook
MaximBet
PlayUp Sportsbook
PointsBet
TwinSpires
William Hill
Tipico Sportsbook
Betway Sportsbook
Superbook

Even as the USA churns out record sports betting revenues, this isn’t good news for the industry.

(Note: Barstool Sportsbook has been rebranded ESPN Bet by their parent company Penn Entertainment.) Competitive markets are dependent upon more than just a couple of players dominating the offerings. Right now, it seems as if sports betting in the United States will become a four- or five-sportsbook affair.

That’s problematic for consumers. They will not receive online sports betting bonuses or online sports betting odds that are as user-friendly if the market continues to winnow down.

Something eventually needs to be done. Or maybe ESPN Bet will pop in a way that lays the groundwork for other new entrants. At any rate, this is a trend all of us must keep an eye on.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: