The third U.S. online sportsbook announced it was shutting down this week when MaximBet sent an email to its customers citing “macroeconomic conditions.”
“While making great strides in offering customers a completely unique player experience, our ability as an early-stage company to compete in a market where operating costs far exceed revenue, even among the top operators, is not sustainable,” the company said in the email.
The sportsbook was launched in 2021 by the Carousel Group, rebranding its SportsBetting.com site via a partnership with the men’s magazine, Maxim. Carousel raised $50 million for the relaunch and was licensed in Colorado and Indiana, with plans to Iowa, New Jersey, Pennsylvania, Ohio and Ontario via a partnership with Caesars.
MaximBet is no longer taking bets and will issue withdrawals through December 15, after which all users will receive a check for any outstanding funds.
“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,” the statement concluded.
MaximBet is the third U.S. sportsbook to bite the dust this year. Early in the year, Churchill Downs shuttered its Twin Spires sportsbook and just last month, Fubo TV folded its Fubo Gaming experiment after less than a year in operation.
