BlueBet will stop all operations in the US market. It offers up to AU$8 million more annually. This is to put towards its growth targets in Australia.
Previously, the company revealed it was exiting its market access agreement with the Horseshoe Hammond Casino in Indiana. Nonetheless, it is now pulling the plug on its B2B SaaS platform altogether.
According to BlueBet, slower-than-expected regulation has hampered total market growth and hindered interest in the platform. This was initially viewed as a significant opportunity.
Nevertheless, BlueBet cited industry dynamics in the B2C US market as a reason for its exit. These are such that scale players are currently dominant with smaller operators unable to achieve the necessary unit economics.
The company noted that this has driven a previous wave of consolidation and exits. It said it is likely to continue into the following year.
Among the operator groups, Super Group and Kindred have also exited the US market in previous months.
The exit of BlueBet will offer the company between $6 million and $8 million in cost savings to fuel growth in its core operations in Australia.
In Australia, BlueBet is rebranding to betr. This follows a merger with the company announced last April. It is also looking to exceed 10 per cent market share in Australia in the short-to-medium term.
The operator said that importantly, the company maintains ownership of its highly scalable, proprietary international sportsbook technology and will continue to pursue further monetization of its technology assets in the United States and internationally.
It added that BlueBet will cooperate with relevant partners and regulators to wind down the US operations and ensure the return of customer funds and anticipates incurring one-off separation costs related to the closure of its US operators.
More details will be provided by the management team during the next quarterly update and investor call, scheduled for late October.
