BlueBet Announces Exit from US Market
Australian sportsbook BlueBet is pulling out of the US market.
According to BlueBet, the US B2C betting market is currently dominated by large-scale players.
LISTEN TO THIS ARTICLE:On Thursday (August 29), Bluebet announced its plans to discontinue its online wagering operations in the United States.
The operator's final decision to shut down its entire US business came after it terminated its market access agreement with Horseshoe Hammond, its partner in Indiana, in July, effectively canceling its launch in the state.
At the time, the bookmaker stated that it arrived at the decision after conducting a strategic review of its US operations. The company also announced its intention to focus more on its core US business-to-consumer markets in Colorado, Louisiana, and Iowa. However now, BlueBet is exiting the market entirely.
According to BlueBet, the US B2C betting market is dominated by large-scale players, leaving smaller operators unable to achieve sustainable unit economics. The company noted that this has led to a recent trend of consolidation and exits expected to extend into FY25.
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Betr to Boost BlueBet’s Australian Ambitions
With the latest development, it appears that BlueBet has reevaluated its role in the US and is prioritizing growth and profitability in its home territory, especially with its recent acquisition of Betr.
To acquire the micro-betting platform, BlueBet distributed roughly $265.4 million worth of fully paid shares to Betr’s shareholders, which amounted to 57% of BlueBet’s shares.
The purchase is projected to boost BlueBet’s market share in Australia to over 10%, aligning with the company’s strategic focus. In 2023, BlueBet reported an EBITDA loss of $12.9 million, which included a $3.3 million profit from its Australian wagering operations. In the year, the operator also saw a 7.7% rise in active customers to 70,456.
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