MaximBet Closes US Sportsbook Operations, Cites ‘Cost Prohibitive Marketplace’

Posted on: November 16, 2022, 07:27h. 

Last updated on: November 16, 2022, 07:49h.

For the second time in a month, a US sportsbook is calling it quits. This time, it’s MaximBet, which made the announcement to its bettors Wednesday.

MaximBet letter
MaximBet sent its customers in Colorado and Indiana a letter Wednesday notifying them the online sportsbook would no longer take any wagers and will close out all accounts by Dec. 15. (Image: MaximBet)

The online sports betting operator owned by the Carousel Group, which partnered with men’s lifestyle publication Maxim Magazine, told bettors that “challenging macroeconomic conditions and an increasingly cost prohibitive marketplace” hastened the decision.

It is with sincere anguish that we have informed our incredibly loyal customers that the current macroeconomic conditions have caused MaximBet to cease operations,” the operator said in a statement to media. “MaximBet launched in 2021 with a desire to bring sports, entertainment, and betting together, all inside a lifestyle brand with a complete focus on the end user… Our priority now, in consultation with state regulators, is to wind down operations and help active customers in Colorado and Indiana withdraw their funds and close their accounts.”

MaximBet did not launch in Indiana until Sept. 30. According to data from the Indiana Gaming Commission (IGC), it reported a $397,012 handle for October. That was less than .09% of the $446.2 million handle the 28 retail sportsbooks and online apps reported. The company’s gross receipts totaled $43,928.

Company leaders placed emphasis on special events to promote the brand. That included hosting a party in advance of the Super Bowl earlier this year and a masquerade party in Colorado.

In addition, Rap superstar Nicki Minaj signed on as an investor and a brand ambassador. MaximBet also made history by signing Charlie Blackmon to an ambassador deal, making the Colorado Rockies outfielder the first active MLB player to promote a sportsbook.

The Latest to Close

MaximBet follows in the footsteps of Fubo Sportsbook. On Oct. 17, executives with FuboTV announced they were closing their gaming operations. They made that decision after the company could not find a suitable partner during a two-month strategic review process.

Fubo was live in Arizona, Iowa, and New Jersey. Earlier this month, the New York Jets filed a petition in a Delaware court seeking a receiver for the sportsbook. That’s after the NFL team claimed Fubo defaulted on a $12.4 million partnership the two sides reached last year.

Also late last month, Kindred Group announced that its Unibet division would pull out of online sports betting in Iowa. Kindred said Unibet focus its efforts on markets that allow both sports wagering and iGaming.

Earlier this year, Churchill Downs announced it would shut down its TwinSpires sports betting apps and allow that division to focus on online wagering for horse racing.

MaximBet Recently Sought Pursued New Markets

MaximBet stopped taking wagers on Wednesday, and informed customers they can withdraw money through Dec. 15. Any accounts left open by that date will be closed out and those individuals will receive a check.

While it was active in two states, MaximBet was seeking to expand in recent weeks. It reached an agreement to become a mobile sports betting partner with JACK Cleveland Casino in Ohio.

A representative for JACK Entertainment declined to comment on Wednesday.

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