BlueBet exits the US to double down in Australia

Sports betting company BlueBet has decided to pull the plug on its operations in the United States, focusing instead on its home country of Australia, where the firm recently acquired Betr, a popular betting company, and will be rechristening its overall platform under the latter’s brand and identity, multiple media sources reported.

BlueBet commits to sports betting market in Australia, exits US

The acquisition is going to create synergies between the two companies’ technological, marketing, and player expertise and hopefully help boost BlueBet’s standing in the market at a time when the country is about to implement a partial or full ban on sports betting advertisements. However, BlueBet has urged investors to take heart as it is all part of its broader plan, as outlined by the betting operator in a statement:

"The company’s stated objective is to exceed 10% market share in the short- to mid-term through a combination of organic and inorganic growth. It is confident its expertise in building and scaling Australian wagering operators and ongoing investment in technology will deliver outstanding experiences for customers and create value for shareholders."

BlueBet’s decision to leave the United States does not come easy, but it is a strategic step that will allow the company to remain on a growth path while slashing expenses and focusing on core profitable business.

The company conducted a detailed strategic review, which saw it first quit Indiana. The business struggled to grow in the B2B SaaS platform, which is considered one of the company’s main pillars of growth. Another reason must have to do with the fact that the United States market is increasingly entrenched around the duopoly held by FanDuel and DraftKings.

BlueBet has not directly complained about this, but many operators have decided to exit the market in recent months, finding it unsustainable to wrestle for market share at the cost of unjustifiable marketing budgets and the dim prospect of turning a profit.

Sports betting businesses forced to leave the US market

PointsBet, a fellow Australian company, was similarly forced to shutter its operations. WynnBET, Tipico, MaximBET, Fubo Sportsbook, and FOX Bet are all among the companies that have tried their hand at the local sports betting market only to be dealt a tough hand. At first, BlueBet intended to remain operational in Colorado, Louisiana, and Iowa, but it finally decided against it.

The company’s decision to quit the United States is not made on a whim either, as the company sees the value in such a move and has put a fixed price on it – BlueBet is looking to save up to $5.42m annually, and it expects to save at least $4.07m from the decision to exit the US sports betting business.

As to its technological platforms, BlueBet has said that it would be keen to offer them to companies in the United States and elsewhere even if it is not going to be operating a direct betting platform any longer.

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