US sports betting challenger MaximBet shut down its sportsbook on 15 November.
The brand – which was owned by Carousel Group in partnership with magazine publisher Maxim – said the closure was a result of challenging macroeconomic conditions and an “increasingly cost prohibitive marketplace”.
Customers were informed via email this week. They now have until 15 December to withdraw their funds but will no longer be able to make deposits or place wagers.The sportsbook was live in just two US states – Colorado and Indiana.
IMPORTANT MAXIMBET NEWS
With regret, we’re informing customers that MaximBet is ceasing operations. Our priority now, in consultation with state regulators, is to wind down operations and help customers withdraw their funds and close accounts. More info: https://t.co/8QzwUOn256. pic.twitter.com/WERYlT1u3s
— MaximBet (@MaximBetUSA) November 17, 2022
MaximBet launched in 2021 with the intention to combine sports and entertainment with a lifestyle brand. Rap icon Nicki Minaj was recruited as a strategic adviser and global ambassador in June.
In a statement provided to Sportico reporter Eben Novy-Williams, who broke the original story, MaximBet said: “While making great strides in offering customers a completely unique playing experience, 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.MaximBet: “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.”
“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.”
US market leader FanDuel currently occupies a 42% market share in GGR terms, while the big four operators account for roughly 80% of the overall market.
To date, smaller players in the market have struggled to successfully carve out a niche.