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It would appear that online casinos are a good business to be in at the moment. Canadians’ voracious appetite for playing on the slots and table games or having a punt on the outcome of a sporting event means that the online gambling companies are faring very well in terms of turnover, profitability and viability. Despite its relatively small population compared to land mass, Canada is still a significant player when it comes to the success of online casino companies.
US not so super after all
In fact, some major players in this entertainment world are now focusing their efforts on the North of the border and withdrawing from the US market altogether. When gambling regulations were relaxed in the US after the dismantling of PASPA’s federal ban on sports betting, many international operators moved into the market, assuming that more states would legalize not only sports but also casino gambling too. However, this has not proved to be the case, and now the likes of Super Group, which owns Betway and Spin Casino, have decided to exit the New Jersey and Pennsylvania markets and focus on the burgeoning Canadian market instead. The move comes amid profitability concerns and regulatory challenges.
Withdrawing to grow
The company claimed the withdrawal was part of a strategic review to streamline operations and improve shareholder value in the long term. However, it was not only iGaming that did not play out for the group; in July 2024, it quit the US sports betting market. While there are considerable one-off costs of between $30 and $40 million relating to the withdrawal, savings are anticipated to show up at the start of 2026. The timing of the savings will also coincide with the opening up of Alberta’s commercial market, and the company will likely be applying to be a license holder in the province, given the popularity of its brands in the Ontario market. Review site Casinos.ca will be keeping a weather eye on all the developments in the online casino Canada market, and it appears that the US’s loss will be its neighbour’s gain.
CEO Neal Menashe explained,
“Recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon,”
Price moving in the right direction
While the final date has yet to be set, investors seem to be happy with the promise of more details being provided at its Investor Day in September, as its share price has rallied and improved dramatically from where it was a year ago. Its most recent peak was around the time of the news to quit the US, and it is expected that there will be strong growth once the plans are confirmed. The stock is up 77.77% year to date, making it one of the best-performing gaming equities this year.
Super Group had projected $99.5 million in 2025 revenue from its US business with North America, including Canada, bringing in 35% of the company’s revenue in the first quarter of 2025. However, it appears that the profitable part of the business was in the Canadian markets, and the company has said that that is where it will now focus its efforts. Ontario has proved to be a particularly fertile ground for online Casinos, and Super Group was one of the original license holders in the province. It also plans to be in on Alberta’s launch in 2026, and now Africa is also seen as a key market. Shareholders will be hoping that the going is easier than in the US market, where slowed iGaming expansion, steep licensing costs and rising taxes, together with a highly concentrated operator landscape, meant that these stocks were not landing the jackpot.
Menashe said,
“This is a difficult decision, particularly because our US team has worked hard and made progress over recent quarters. We therefore intend to focus capital and resources on markets where we see the greatest opportunity for scalable, sustainable, profitable super growth, with a disciplined emphasis on operational efficiency.”
Raising expectations
The company has raised its full-year 2025 revenue guidance (excluding the US) to over $2 billion, up from $1.92 billion. It has cited pricing improvements, efficient risk management, and robust customer engagement as key contributors to its upward revision. Its share price is a little lumpy and bumpy at the moment, but travel appears to be in the right direction. Super Group took the plunge and went public in 2022. It claims its listing has enhanced credibility with regulators, financial institutions, and customers.
The investor relations team was reported as saying, “We’re also now more credible with regulators and banks than when we were privately held, and even our customers appreciate the clear message of strength and integrity that being a listed business gives us.”
A safe bet
However, they are by no means the only publicly listed gambling organization on the market. Entain, Flutter Entertainment, DraftKings, and Evolution Gaming are also massive names in the world of online gambling and a safe bet for those looking for some entertainment stocks in their portfolios. Generally speaking, online casino companies and game developers are faring better than their land-based counterparts. Where organizations have spread their options across different channels, the market seems to be holding up.
All bets are off
One of the world’s most successful and renowned online gambling companies remains in private hands. While Bet365 has toyed with the idea of going public and even teased the market with stories of a sale bagging the Coates family £9 billion, for now, the empire is a strictly private affair. The market might be eager to acquire this stock, but it would be an enormous culture shock for the organization, which has been firmly rooted in its home soil of Stoke-on-Trent while conquering the global online gambling world. It is fair to say that, should the decision to go public arise, there would be enormous interest from investors whether from the FTSE or Dow Jones .
