In a move that has shocked many in the sports betting industry, SI Sportsbook announced their decision to exit the Colorado market. This decision comes amidst a growing trend of consolidation and competition in the iGaming sector, which has put significant pressure on smaller operators like SI Sportsbook.
The announcement was made on Monday, with SI Sportsbook citing the increasingly competitive market in Colorado as the main reason for their exit. The company, which is a subsidiary of Sports Illustrated, has been operating in the state since the legalization of sports betting in 2020. However, they have struggled to compete with larger operators who have more resources and a wider range of offerings.
This exit is just the latest example of the squeeze on smaller operators in the iGaming industry. In recent years, there has been a wave of consolidation as larger companies look to expand their reach and increase their market share. This has made it increasingly difficult for smaller operators to compete, leading many to either exit the market or be acquired by larger companies.
The exit of SI Sportsbook is sure to have an impact on the Colorado market, as they were one of the smaller operators with a loyal customer base. Their departure will leave a gap that other operators will be eager to fill, which could lead to further consolidation in the market.
Industry analysts have pointed to a number of factors contributing to the squeeze on smaller operators, including increasing competition, regulatory challenges, and the cost of acquiring customers. As the iGaming industry continues to grow and evolve, it is likely that we will see more exits from smaller operators in the coming months.
For now, SI Sportsbook customers in Colorado will need to find a new operator to place their bets with. The company has assured customers that their funds are safe and will be returned to them in a timely manner. It remains to be seen what impact this exit will have on the wider iGaming industry, but it is clear that the landscape is changing rapidly and smaller operators are feeling the squeeze.