Sports betting: What will it take to create a viable US challenger?

Maximbet is the latest US sports betting operation to shut down. The podium of US operators has effectively been set. The likes of FanDuel, DraftKings and BetMGM are the main competitors.

MaximBet failed to achieve even enough market share to justify its less cost-intensive strategy.  

The best thing to do is to look at the best of the rest in the US market and see what those who have achieved a modest market share have done well and why others have failed.

Rush Street Interactive is a successful US sportsbook operator. It is focused on online casino rather than sports betting. Bally's is looking to make cuts in its North America interactive division. It might be a long time before online casinos are legal in more than a handful of states. However, the vertical is lucrative enough that even a few states offer a clearer way to break even than with sports. RSI is well-positioned to offer its product for the otherwise-underserved hispanic US market. The operator's international strategy appears to set the stage for strong US growth opportunities.

Penn Entertainment's interactive arm, which includes theScore in Canada, was profitable in October. Barstool Sportsbook is doing well by the low standards of second-tier US operators. MaximBet tried to create a less organic version of what Penn's BarStool has. Bar stool's personalities have a loyal following and Penn has used them effectively.

PointsBet has a good market share among the second tier, but it's still losing a lot of money in the US. It did most of its marketing in 2019 and 2020. It's a warning to those who are too late to get serious in US market. The brand has bought a very large amount of name recognition at a solid price.

Fubo Sportsbook aimed to integrate betting and streaming to create a new kind of sports entertainment experience. It's a huge tech challenge just to get video to keep up with live odds without regular suspensions. Many customers don't want to see betting odds constantly on their screen through a match. Betr is trying to revolutionise the sector but it's unlikely to succeed. European operators have handled next-point markets in tennis pretty well for years.