SI Sportsbook Shutters Operations in Colorado Amid Challenges in National Expansion

SI Sportsbook, the online sports betting platform affiliated with the renowned Sports Illustrated brand, has officially exited the Colorado market. This move marks a significant shift for its parent company, Evoke plc, a prominent player in the U.S. sports betting scene. Evoke’s decision to close SI Sportsbook’s operations in Colorado highlights the ongoing difficulties smaller sportsbooks face when competing against industry giants, with increasing operational costs and a challenging market landscape contributing to their retreat from the state.

With fewer sportsbooks to choose from, the state’s market may see reduced competition, leading to changes in pricing models, promotions, and betting offerings. Bettors in Colorado who enjoy a wide variety of platforms may find fewer options available, and the shift may affect how sportsbooks approach customer loyalty and promotional strategies in the future. Local players still have plenty of options online, and playing on any of the best paying online casino sites remains a valid option, where competition is battling to offer better games, bonuses, and support.

The announcement, which was made public on September 18, 2024, through a notice on the SI Sportsbook website, informed customers that the platform would cease accepting new deposits. Customers were also directed to customer support for assistance in managing their accounts. As part of the closure, active users were given details about how to withdraw their funds. The closure of SI Sportsbook in Colorado was part of a broader trend, with the company now focusing its efforts on a smaller subset of states, including Michigan and Virginia, where it continues to operate.

SI Sportsbook is not the first operator to leave the Colorado market. This closure follows a wave of departures from the state, with other sportsbooks such as Betsafe and ClutchBet announcing their exits in recent weeks. SI Sportsbook now joins this list of departing brands, signaling a growing trend of market consolidation in the era of ‘superstar’ firms. In total, the number of active sportsbooks in Colorado has dropped from about 30 to fewer than 20. This shrinking landscape further emphasizes the challenges faced by smaller and newer market entrants that struggle to carve out a niche amidst strong competition from established giants like FanDuel and DraftKings.

Evoke’s decision to shutter SI Sportsbook is tied to a larger strategic review the company initiated earlier this year. The company revealed plans to divest its U.S. business-to-consumer assets, including SI Sportsbook, to Hard Rock Digital. The deal, expected to be finalized by the first quarter of 2025, is part of Evoke’s efforts to streamline its operations and focus on other areas of its business, where we can see an example with Sports Illustrated resorts and travel opening up across U.S. college towns. As part of this divestiture, Evoke is set to pay a termination fee of $25 million to Authentic Brands Group, the owner of Sports Illustrated. An additional $25 million will be due by 2029.

The broader context of SI Sportsbook’s closure in Colorado underscores the difficulties smaller sportsbooks face in maintaining a competitive edge in the U.S. sports betting market. Despite the strong brand recognition of Sports Illustrated, SI Sportsbook was unable to attract a sufficient customer base to sustain its operations in a state crowded with numerous sportsbooks. The market’s dominance by larger companies like FanDuel and DraftKings, which collectively hold more than 80% of the market share, made it increasingly difficult for SI Sportsbook to capture and retain customers. This situation mirrors a trend seen across several states, where smaller operators are finding it hard to survive against well-established competitors that offer better promotions, more extensive sports coverage, and superior technology.

The closure of SI Sportsbook in Colorado is part of a broader trend of contraction within the U.S. sports betting industry. Several other sportsbooks, including Betfred and ClutchBet, have also exited the state in recent months. Betfred ceased its operations in Colorado at the end of August 2024, while ClutchBet followed suit in mid-September. As a result, the state’s sports betting market is becoming increasingly concentrated, with only a handful of large operators dominating the landscape.