Last updated: September 02, 2024
BlueBet is exiting the U.S. sports betting market to focus on its Australian operations, following its acquisition of Betr. This strategic shift aims to enhance market presence in Australia and save up to $5.42m annually. The company plans to offer its technology platforms to other firms globally despite leaving the U.S. market.
BlueBet, the sports betting firm based in Australia, has laid down its plans to pull out of America’s market and centralize its operations in Australia. This strategic move was made after BlueBet purchased another betting firm, Betr in the recent past. This firm intends to pivot its platform to Betr’s brand to improve its standing in the market.
Part of the impact of this tie-up is the integration of technology, marketing, and players from both the acquiring company as well as Betr. This consolidation is at a time when Australia is ready to add more restricted ads on sports betting.
However, BlueBet has sounded optimistic about its future. It has set its target of achieving more than 10% of the company’s market share in the short to mid-term and expanding it through organic and inorganic growth.
They said the experience learned in the development of Australian wagering operators and ongoing technological development would translate into excellent customer experiences and value added to its shareholders.
BlueBet’s withdrawal from the U.S. market is a strategic move to cut costs and focus only on highly lucrative markets. It had previously been engaged in Indiana and planned to remain in Colorado, Louisiana, and Iowa, which has also finally been deemed unsuitable.
This move is expected to bring BlueBet an annual cost-cutting benefit of up to $5m. $42m annually, with estimated annual savings of no less than $4. The company will generate $7 million from disengaging from the U. S. sports betting segment.
While BlueBet will not now directly offer a betting platform in the U. S., the company has indicated that it is willing to take its technological platform to as many interested interactive gaming operators there and worldwide.
The Australian sports betting company BlueBet has decided to exit the United States sports betting industry following an extensive assessment. Over time, the company pulled out of Indiana and intended to carry out operations in Colorado, Louisiana, and Iowa.
However, it has now decided against this, citing the challenging competitive landscape dominated by FanDuel and DraftKings as a key factor.
The decision to leave the U.S. market comes as many operators face similar difficulties. Companies like PointsBet, WynnBET, Tipico, MaximBET, Fubo Sportsbook, and FOX Bet have all struggled to gain traction in the saturated market. The high costs of marketing and the slim prospects of profitability have led to several exits.
BlueBet’s move is part of a broader strategy to focus on its home market of Australia. The company anticipates saving up to $5.42 million annually from this decision, with an expected minimum saving of $4.07 million.
Despite leaving the U.S. market, BlueBet plans to continue offering its technological platforms to companies both in the United States and internationally.
