This spring, BlueBet, the emerging Australian betting giant, announced a strategic deal with Betr, a recognizable gaming and betting operator. After the announcement of this strategic collaboration, the company confirmed its plans to review its operations in the United States.
Now, BlueBet confirmed its intention to exit the US market and focus on its growth in Australia, which represents its core market. Supporting its decision to exit the lucrative US market, the company confirmed that the gambling regulation was “slower than expected.” This development ultimately hindered the company’s growth plans.
Moreover, the slower-than-expected regulation impacted the interest in BlueBet’s business-to-business SaaS platform. This was rather disappointing, especially considering that the company relied on that asset for its market expansion.
The company further explained that the industry “dynamics in the US B2C market are such that scale players are currently dominant with smaller operators unable to achieve the necessary unit economics – driving a recent wave of consolidation and exits, which is likely to continue into FY25.”
“BlueBet Holdings Limited today announces its decision to exit the US market to focus its capital and operational efforts on its core Australian market,“
reads a statement released by BlueBet
Despite its intention to exit the US market, BlueBet will retain the ownership of its highly scalable international sportsbook technology. Leveraging this asset, the company will continue to pursue monetization options across the US and around the world. “BlueBet will collaborate with relevant partners and regulators to wind down the US operations and ensure the return of customer funds and anticipates incurring one-off separation costs related to the closure of its US operations,” added the company.
The Betting Giant Aims at 10%+ Market Share in Australia
In light of BlueBet’s “capital-lite” US strategy that effectively reduced its investment for market entry, as noted, the company plans to focus on growing its footprint in Australia. The halt of BlueBet’s US operations is expected to bring between $6 million and $8 million per year.
These vital funds will be used to propel the company’s operations in the Land Down Under. There, BlueBet anticipates capturing more than 10% market share rather quickly.
Ultimately, the gaming company expects to achieve this expansion through a “combination of organic and inorganic growth.” Unlike the US market, BlueBet remains confident in its ability to grow in Australia, leveraging its assets and benefitting from the strategic collaboration with Betr.
