Posted on: March 8, 2022, 06:39h.
Last updated on: March 8, 2022, 07:29h.
Mansion Group is exiting the sports betting scene. The gaming operator announced its departure, but added that it will continue its iGaming operations.
The hunger with which gaming operators once approached sports betting is dwindling. As a result, several entities have announced their exit from the multibillion-dollar industry over the past few months.
Mansion Group, the company behind MansionBet, MasinoCasino, and others, joins the growing field. It will give up on sports betting at the end of this month.
More Value in iGaming
Mansion feels that there is a lot more value in iGaming than sports betting, although it’s leaving the door open for a possible return. For now, it will halt its sportsbook operations in the UK, focusing solely on online casino products.
As of March 31, customers will no longer be able to place wagers or make deposits. Any open bets for events after that date won’t produce winnings, but users will get their money back. By April 28, Mansion hopes to have all of its user account balances down to zero through withdrawals and refunds.
Mansion Group have decided to focus on our award-winning casino brands Casino.com, MansionCasino.com, and SlotsHeaven.com, and continue to operate in the UK online casino market,” explained Mansion Group.
The company hopes to expand its iGaming reach to other countries as well. It is working on approval for a license in Ontario ahead of the Canadian province’s iGaming launch next month. It is also going to build up its casino brands in other markets, such as Spain, where it already has a presence.
Not a Top-Five Brand
Market consolidation is found in any industry, and the sports betting industry is ripe for mergers, acquisitions, and attrition. Last August, Genting UK dropped out of the UK sports betting market to focus on iGaming.
On the other side of the pond, TwinSpires announced its exit earlier this year. The Churchill Downs Inc.-owned company also decided to target sports betting.
Mansion’s exit comes only days after Onisac, its sports betting arm in Gibraltar, found itself in trouble with the Gibraltar Gambling Commissioner. Not paying attention to anti-money-laundering protocols cost the company £850,000 (US$1.14 million).
That’s a lot of money for any operator to pay, but more for one with a limited footprint. One industry analyst points out that Mansion Group only has a superficial entry in the UK sports betting scene. As a result, exiting makes more sense than trying to stay in.
Gavin Kelleher of financial services firm Goodbody asserts that Mansion only has a “sub-optimal” penetration in the market. Moreover, not being a “top-five brand” in the UK makes competing with Flutter, 888, and others too challenging.
More exits are likely as well.
“I think this is a reflection of the competitiveness of the market and regulatory headwinds in the UK, Kelleher said. “We’ve seen other smaller operators leave the market, and it’s probably going to be an ongoing trend.”
There are over 500 licensed online sports betting operators in the UK. However, with the pending regulatory changes coming in the next few months, it’s likely that many of these will prefer to leave the market than to play by more restrictive rules.