BlueBet is an Australian sportsbook operator that offers its market in the United States. Recently, the gaming company decided to withdraw its operations in the U.S. as part of a strategic review. Additionally, BlueBet announced two months ago that they were leaving to leave Indiana. At that time, BlueBet noted they would still be doing business in Colorado, Iowa, and Louisiana. However, the strategic review was still ongoing and the company felt that leaving the U.S. market completely was the right move. Now, BlueBet can focus on its Australian business which is thriving. In April, BlueBet acquired their Aussie rival Betr. They were able to combine the buyer’s technology stack with their strong customer base. A statement from BlueBet had this to say about the company shifting its focus back to Australia.
“The company’s stated objective is to exceed 10% market share in the short- to mid-term through a combination of organic and inorganic growth,” according to a statement. “It is confident its expertise in building and scaling Australian wagering operators and ongoing investment in technology will deliver outstanding experiences for customers and create value for shareholders.”
BlueBet will save money by parting with the U.S. sports betting market
The United States sports betting market is one of the most popular in the world. At the same time, it’s an extremely tough and expensive market to operate in. High costs weigh heavily on smaller sportsbooks like BlueBet. Investors said that BlueBet can save $4.07 million to $5.42 million annually just by leaving the U.S. market. BlueBet experienced slower regulation than they expected in the U.S. and that hurt the business-to-business Sportsbook-as-a-Solution (SaaS). While BlueBet did not specifically mention any sportsbooks, there’s no doubt industry leaders like FanDuel and DraftKings were driving factors for BlueBet to leave.
Smaller sportsbooks cannot exist and be profitable in the U.S. market. BlueBet is not the only company to deal with that problem in 2024. Just two weeks ago, Betfred announced they’re considering exiting the U.S. market as well. Other sportsbooks that have left the U.S. scene are Fubo Sportsbook, FOX Bet, MaximBET, PointsBet US, Tipico, and WynnBET. Additionally, Betway’s parent company Super Group announced they are leaving the U.S. sports betting market.
