BlueBet, the renowned Australian sportsbook operator, has announced its exit from the Indiana gambling market. The company revealed its decision to shift the company’s focus to other states in order to maximize returns on its US operations. Meanwhile, a comprehensive strategic evaluation of its US base continues, hinting at the potential for significant changes in its American footprint.
This sports betting platform, well-featured in commercials, earned its ticket into the Indiana sports betting platform through a mutually agreeable partnership with Horseshoe Hammond. The latter, a casino run by industry behemoth, Caesars Entertainment, and BlueBet mutually decided to dissolve the partnership as of June 30.
Founded six years ago, BlueBet, which took the leap to go public on the Sydney Stock Exchange in 2021, plans to channel its energies into developing its sports betting wings in Colorado, Iowa, and Louisiana. In addition, it will be stepping up its game in rolling out its business-to-business (B2B) Sportsbook-as-a-Solution (SaaS) product.
These three states, considered among the fastest blossoming in terms of sports betting, present BlueBet with an attractive landscape for business growth. Simultaneously, the company sidesteps the hefty expense that accompanies operations in the larger markets, such as New York or Pennsylvania.
As the wave of mobile sports betting authorization sweeps over more states, the market share has shrunk dramatically, now dominated by two major operators – FanDuel and DraftKings. This stranglehold on the market could have driven the strategic review initiative for smaller players like BlueBet. However, the company refrained from revealing more information about this strategic review other than it is in process.
BlueBet’s position remains clear – it is grounded in solidarity with its shareholders and is dedicated to increasing their value. By focusing on developing their Australian business, which has been performing well, while simultaneously scaling the US market with their ‘Capital Lite’ strategy, the company aims to bolster its returns on their capital investments.
In line with its commitment to the American market, BlueBet entered into a B2B agreement in Ohio in March. The company is banking on such deals to mitigate its sportsbook operating costs in the US.
BlueBet’s struggle to extrapolate their Australian success to the US is not an isolated occurrence. There was a precedent when PointsBet sold PointsBet US to Fanatics for $225 million last year following difficulty gaining a tangible market share in the US and it becoming a burdensome factor for the parent company.
Australians BlueBet and PointsBet boast of solid sports wagering operations in one of the world’s most developed sports wagering markets. The gaming industry in this jurisdiction is rife with consolidation rumors; however, BlueBet isn’t considered a likely target, but more a potential investor.
In the US, BlueBet’s ongoing strategic reappraisal may hint at a possible sale. The situation remains shrouded in mystery, however, as rumors regarding potential buyers are not yet forthcoming.
