MaximBet is ceasing all operations as the US sports betting market finishes out a period of extremely rapid growth and enters what is likely a long period of consolidation. The operator posted the announcement on MaximBet.com late on Wednesday, and gave players until December 15 to withdraw their funds.
In an email version of the announcement company officials described the situation saying,
“It is with sincere anguish that we have informed our incredibly loyal customers that the current macroeconomic conditions have caused MaximBet to cease operations.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. 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.”
MaximBet is a good example of the giddy, land-rush mentality that’s characterized the early stage of the American regulated sports betting market. The company first emerged in April, 2021 as a partnership between an established gaming operator, the Carousel Group, and the media brand Maxim (producers of Maxim Magazine) – along with $50 million worth of outside investments.
Initially, things went relatively well for the brand as it launched in Colorado and Indiana with the help of celebrity endorsements from Nicki Minaj and MLB player Charlie Blackmon. The company was slated to enter ten more states in the near future thanks to a partnership with Caesars, but that effort is off the table now.
So far there’s been no word as to how many employees will be impacted by this closure.