BlueBet announced that its decision to exit the US market was due to slower-than-expected regulatory advancements, which have impeded overall market growth and reduced interest in its B2B SaaS platform, once considered a key growth opportunity.
In a press release, BlueBet explained, “The current industry dynamics in the US B2C market are dominated by larger players, while smaller operators struggle to achieve the necessary unit economics. This has led to a wave of consolidation and exits, which is expected to continue into FY25.”
Despite the challenges, the company has mitigated risks by taking a conservative, “capital-light” approach to its US market entry. With the closure of its US operations, BlueBet anticipates reallocating between $6 million and $8 million in annual cost savings to strengthen its presence in Australia, where it claims to have a “sustainable competitive advantage.”
BlueBet aims to achieve a market share exceeding 10% in Australia in the short to medium term, leveraging strategic acquisitions to support this growth.
Although BlueBet is withdrawing from the US, it will retain ownership of its proprietary international sports betting technology and intends to continue monetizing this asset both domestically and globally.
During the exit process, BlueBet will collaborate with relevant partners and regulators to ensure a smooth wind-down of its US operations, including the secure return of all customer funds.
The company noted that it might incur certain one-off charges, details of which will be shared during its next quarterly earnings call in late October 2024.
Earlier this year, in April, BlueBet entered into a binding asset sale agreement with Matthew Tripp’s Australian brand Betr. This was followed by the rebranding of BlueBet’s Australian B2C operations as betr in August 2024, reflecting the integration of the two companies.
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