MaximBet Ceases Sports Betting Operations
Photo by Cassidy Sparrow/Getty Images for unKommon events.
Another one bites the dust.
It has been a tough year for sports betting operators as they realize the amount they have to spend to get into the market is not worth the returns.
MaximBet is the latest casualty in the sports betting world as it announced plans to cease operations on Wednesday.
"It is with regret that, effective immediately, MaximBet will cease operations," the company said in a statement to its customers. "Challenging macroeconomic conditions and increasingly cost-prohibitive marketplace have accelerated this difficult decision."
MaximBet was operating in Colorado and Indiana and had plans to expand to more states. They are no longer accepting wagers as of November 16. If bettors have open bets, they will be graded by December 15 and bettors will receive fair market value for their open futures.
MaximBet has told its customers they can withdraw their funds through Dec. 15. Otherwise, the company will mail a check to the address on file for all outstanding balances.
Nicki Minaj was one of their main investors and one of the faces of the company.
"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," the MaximBet statement read.
"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 now appears to be putting all its efforts into making sure the money gets back in the customers' hands.
"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 is the second company in recent months to cease betting operations and the third company to fold in 2022. FuboTV ceased its betting operations last month.