Just one month after FuboTV announced it would be shuttering its sportsbook division, another US sportsbook brand is shutting down.
Today, MaximBet let users know it will be shutting down even though the online sportsbook just launched in Indiana three weeks ago.
The launch in Indiana marked only the second state for the operator, joining Colorado. MaximBet initially launched in Colorado as SportsBetting.com before rebranding to the men’s lifestyle brand last September. The rebrand came about as the operator ownership, Carousel Group, inked a deal with Maxim in April 2021.
Eben Novy-Williams of Sportico broke the news on Twitter:
The company noted:
“It is with regret that we inform you that, effective immediately, MaximBet will cease operations. Challenging macroeconomic conditions and an increasingly cost prohibitive marketplace has accelerated this difficult decision.”
Customers have until Dec. 15 to withdraw funds from their accounts.
Last year, MaximBet’s parent company Carousel inked a market access deal with Caesars that would give them online casino and sportsbook access in states including Pennsylvania and Ohio. The company had plans to launch in Iowa and New Jersey as well.
The sportsbook drew headlines in May for bringing on rapper Nicki Minaj as an investor, ambassador, and creative director for the brand.
Given that Colorado regulators do not break down sports betting revenue by operator and MaximBet has not been open in Indiana long enough to see much monthly returns, it is difficult to ascertain how much handle the brand was doing each month.
However, given the exit of both MaximBet and Fubo Sportsbook as well as Unibet moving out of Iowa, there does seem to be indications that being a small player in multiple smaller markets does not generate the revenue necessary to stay in business. Given the steep licensing fees, marketing costs, and acquisition costs, it certainly seems possible other operators will begin to exit the market.
