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Prime Sportsbook Restructures Amid Thin Margins and Rising Costs
13 Nov
Summary
- Prime Sportsbook files for bankruptcy for financial restructuring
- Company assures customers that operations and accounts will continue uninterrupted
- Thin margins and rising costs, including a tax hike in New Jersey, have put pressure on the business
As of November 13th, 2025, Prime Sportsbook has filed for bankruptcy, but the company's co-founder, Joe Brennan Jr., assures that this is strictly a financial restructuring that will not impact daily operations or customer accounts. Prime Sports, which operates in New Jersey, Ohio, and Kentucky, will continue to function uninterrupted.
The bankruptcy filing allows Prime to address cost structures that no longer align with the current market realities. When the company first launched five years ago, the sports betting landscape was very different. Now, Prime needs to bring down its costs and overhead to have a better chance of being profitable.
Prime's strategy of catering to professional bettors has proven financially challenging, with razor-thin or even negative margins over the past three years. In 2023, the hold percentage was 1.78% on nearly $13 million in bets, while in 2024, the company was in negative territory with a -1.16% hold on over $84 million in wagers. So far in 2025, the hold is at 1.16% on just over $70 million in bets.
Brennan also pointed to New Jersey's recent tax increase, which raised the sports betting tax to 19.75% on gross gaming revenue, as further exacerbating Prime's financial pressures.
