Australian operator BlueBet is making a tough decision to cease all operations in the U.S.
BlueBet announced on Thursday plans to shutter all operations of its online wagering offerings in licensed U.S. markets. The decision to exit the U.S. comes after BlueBet announced in July the termination of its market access agreement with Horseshoe Hammond in Indiana. Now, BlueBet decided to pull the plug on its U.S. business.
The operator had also secured market access in Colorado, Louisiana and Iowa. It faced “slower than expected” regulatory hurdles in other markets where it sought access deals.
“The industry dynamics in the U.S. 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,” said BlueBet.
The operator is expected to save between $6 million and $8 million through the closing. BlueBet will no longer accept deposits after Aug. 30 with plans to officially shutter operations on Sept. 16.
It is encouraging all users to withdraw or wager any remaining funds in their accounts.
BlueBet reflects on business
BlueBet’s exiting America is the result of a strategic review of the company’s U.S. business leading to the decision to halt expansion in the U.S. amid its acquisition of Betr in Australia. BlueBet acquired Betr to create a “leading Australian wagering operator.”
As part of the transaction, BlueBet issued roughly $265.4 million in fully paid shares to Betr shareholders. The amount issued to shareholders equated to 57% of BlueBet’s shares.
BlueBet’s deal with Betr is expected to help the operator gain a more than 10% market share in Australia, the company’s focus. In 2023, BlueBet reported 70,456 active customers, a 7.7% increase year-over-year. It posted an EBITDA loss of $12.9 million in 2023, which included a $3.3 million profit from its wagering operations in Australia.
