Betfair has announced that it is withdrawing from the NJ betting market due to disappointing results and because the state is getting its first sports betting exchange.
Betfair entered the NJ market back in 2015, but generated a sports betting handle of just $12.4 million in 2018. Now, Sporttrade, a sports betting startup, is to introduce a proprietor betting exchange for the state via an agreement with Twin River Worldwide Holdings.
Kip Levin, COO of FanDuel, which oversees UK-based Betfair’s operations in the US, said the exchange “never hit the critical mass needed for it to be viable.”
He added that works in a UK context is not always the same in the US, arguing that the company had failed in the states because of “a customer base used to exotic wagers and reluctance by major US racing associations to embrace the different business model.”