BlueBet announces US B2C and B2B exit to devote full focus to Australia
BlueBet Holdings has confirmed it will exit the US market to focus on achieving its growth targets in Australia following its merger with Betr in April.
After the tie-up, BlueBet conducted a strategic review into its US operations where it operates the ClutchBet brand.
By July, the firm mutually terminated its market-access agreement with Horseshoe Hammond Casino in Indiana as the first step in its decision to pull out of the market.
At the time, it was made clear that BlueBet would then channel its efforts into B2C markets in Iowa, Colorado, and Louisiana. However, those efforts have now been scrapped.
Today, BlueBet issued an update in which it revealed it would exit the US market entirely with both its B2C operations and B2B division.
Bosses cited “slower than expected regulation” as a key factor that hindered interest in the group’s B2B SaaS platform, which it had viewed as a “significant opportunity.”
The statement continued: “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.”
Attentions now turn Down Under, with BlueBet revealing that it now has greater flexibility to achieve its targets in Australia, an objective that will be aided by the redeployment of A$6m-A$8m, per annum, in cost savings realised from the US exit.
Crucially, BlueBet retains ownership of its sportsbook technology and will look to “pursue further monetization” of its technology assets in the both the US and internationally.
The ClutchBet parent company did make clear it would work with all the relevant parties in the process of winding down its US operations to make sure funds are returned to customers. The firm added it expects to be impacted by one-off separation costs linked to the departure.
BlueBet outlined its aims in Australia, explaining that surpassing 10% market share is a strategic objective believed to be within reach in the short- to medium-term, given the Betr merger.
The Australia-facing business will run under the banner of Betr, with BlueBet’s existing customer base due to be transferred over in due course.
The integration is expected to be fully completed in time for the Australian Spring Racing Carnival, which is set to begin on September 7.
BlueBet said: “The merger created a leading Australian wagering operator, bringing together BlueBet’s best-in-class technology platform with Betr’s large and high-quality customer base, with a deeply experienced team setting the company up for its next era of growth.
“The company’s stated strategic objective is to exceed 10% market share in Australia in the short- to medium-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.”