Australian sportsbook operator BlueBet announced its withdrawal from the US market to concentrate on its burgeoning sports betting business in its homeland. The gaming firm’s decision came after a detailed strategic review of its US operations, only two months after it had revealed plans to exit Indiana. At that time, BlueBet had stated intentions to maintain its presence in Colorado, Iowa, and Louisiana, while continuing the strategic review process. By pulling out of the US, the company aims to sharpen its focus on its thriving Australian operations.
BlueBet aspires to capture over 10% of the market share in the short- to mid-term, employing both organic and inorganic growth strategies. The company expressed confidence that its proficiency in developing and scaling Australian wagering operators, coupled with ongoing technological investments, would enhance customer experiences and generate shareholder value.
In April, BlueBet acquired its Australian competitor Betr, merging its own advanced technology with Betr’s robust customer base. This exit from the US market allows BlueBet to leverage the synergies generated from the acquisition more effectively.
Operating in the US, despite being a newly regulated and large market, has proven to be highly competitive and costly, especially for smaller operators like BlueBet. By exiting the US, the company projects annual savings between $4.07 million and $5.42 million, based on current exchange rates. Challenges within BlueBet’s business-to-business Sportsbook-as-a-Solution (SaaS) also played a significant role in the decision to leave the US.
BlueBet cited slower-than-anticipated regulation that stunted total market growth and diminished interest in the company’s B2B SaaS platform, which it had regarded as a substantial opportunity. The statement from the company highlighted the tough landscape smaller operators face when competing with dominant entities like FanDuel and DraftKings, which currently control much of the US sports wagering market.
BlueBet’s exit adds to a growing list of casualties in the US sports betting market. The decision follows closely behind Betfred’s announcement of considering a similar exit and precedes the departures or acquisitions of several others, including Fubo Sportsbook, FOX Bet, MaximBET, PointsBet US, Tipico, and WynnBET. Additionally, Super Group’s Betway and Westgate’s SuperBook have either exited the US market or scaled back significantly, reinforcing the challenging environment for smaller players in the US sports wagering space.
