Posted on: July 1, 2024, 06:28h.
Last updated on: July 1, 2024, 06:28h.
Australian sportsbook operator BlueBet said today it is withdrawing from Indiana to focus its attention on other states. The gaming company also reminded investors that a strategic review of its US operations is ongoing.
BlueBet gained access to the Indiana sports betting market via an agreement with Horseshoe Hammond — a casino operated by Caesars Entertainment. The Aussie company terminated that pact effective June 30, but noted that termination was mutual.
BlueBet, which was founded in 2015 and went public in Sydney in 2021, said it will focus on its sports wagering operations in Colorado, Iowa, and Louisiana as well as “continuing to roll out its business-to-business (B2B) Sportsbook-as-a-Solution (SaaS) offer.”
In Colorado, Iowa, and Louisiana, BlueBet has exposure to some of the fastest-growing sports betting states in the US without the expenses required to operate in major markets, such as New York or Pennsylvania.
BlueBet Still Sees Opportunity in US
As more states have authorized mobile sports betting, market share has increasingly consolidated around just two operators – FanDuel and DraftKings.
That’s made it difficult for smaller players such as BlueBet to gain adequate market share and that could be one reason why the operator commenced the strategic review. In the statement announcing the Indiana departure, the gaming company didn’t provide details on the strategic review except to say it is ongoing.
BlueBet remains committed to maximising value for shareholders. The Company believes focusing its efforts and capital on its outperforming Australian business, while continuing to scale in the US with its ‘Capital Lite’ market entry strategy, will deliver the best returns on capital,” according to the statement.
Signaling it remains committed to the US market, BlueBet said it inked a B2B deal in Ohio in March. The operator believes such agreements can reduce its sportsbook operating expenses in this country.
BlueBet Not First Aussie Operator to Find US Difficult
BlueBet isn’t the first Australian bookmaker that’s found it difficult to replicate success found in its home country in the US. For example, PointsBet sold PointsBet US to Fanatics last year for $225 million after that unit struggled to gain noticeable market share in this country and had become a drag on the parent company’s financials.
Both BlueBet and PointsBet have solid sports wagering operations in Australia, which is one of the most mature sports wagering markets in the world. It’s a jurisdiction in which gaming industry consolidation rumors are persistent, but there, BlueBet might not be a target, but could be a buyer.
Here in the US, BlueBet’s strategic review could be a sign the parent is willing to sell, but rumors regarding potential buyers haven’t surfaced.
