BlueBet Holdings has confirmed its plans to halt its U.S. expansion amid its acquisition of Betr in Australia.
Last week the company announced that it has entered a binding sales agreement to acquire Betr and create a “leading Australian wagering operator”.
As part of the deal, BlueBet will issue approximately $265.4 million in fully paid shares to Betr shareholders which equates to around 56.9% of BlueBet’s current shares.
BlueBet to review U.S. operation
As part of a presentation on the deal, BlueBet revealed that the combined business plans to undertake a “strategic review” of its U.S. operation following the completion of the merger.
The company confirmed that it will reduce its U.S. expenditure going forward and it has no plans to further expand its B2C operation to other markets.
BlueBet currently operates in Ohio and Colorado as ClutchBet. At the time of going live in Colorado it had market access deals set up in Louisiana and Indiana which it now looks unlikely to take up.
Bettors in Iowa wagered $485,323 with ClutchBet in March which netted the operator $41,756 in revenue and through the end of March it had generated just over $258,000 in revenue from a handle of $3.8 million during the 2024 fiscal year to date.
These figures are dwarfed by state leaders DraftKings which posted a $98.8 million handle and generated revenue of $6.7 million in March.
BlueBet says that despite reducing its U.S. expenditure each of its B2C operations has a clear path to profitability.
No change in B2B plans in North America
Despite halting its B2C expansion plans, BlueBet confirmed that it will continue with its aspirations to roll out its B2B offering in the U.S.
Last month the operator announced that it had signed its maiden U.S. B2B agreement in Ohio with Green Savoree Mid-Ohio to be its exclusive sportsbook provider.
Green Savoree Mid-Ohio will utilize BlueBet’s “sportsbook-as-a-solution” proprietary technology platform to launch its new Mid-Ohio Sportsbook.
“Continued growth of B2B partners will be key to driving long-term scale and profitability for BlueBet in the US under our differentiated two-stage “capital-lite” market entry strategy. We expect further opportunities to become available as we demonstrate the strength of our B2B offer in market,” said BlueBet CEO Bill Richmond at the time of the announcement of the deal.
BlueBet says that it will keep the market informed of any relevant developments during the strategic review.
