BlueBet has set its sights on the US market. Namely, the operator has been successful in its attempts to expand its sports betting business overseas, as it has managed to secure its first US sports betting licence. The company has also been listed on the Australian Securities Exchange (ASX), so the entrance into the lucrative US sports betting market will only serve BlueBet well.
Michael Sullivan, who was once in charge of Sportingbet, established BlueBet six years ago. Under his leadership, the company is ready to open the public offering procedure on June 17. Following that, BlueBet will go public on ASX on July 2, with a market value of about $220 million.
It might come as a surprise, but BlueBet is still not a major player — currently, it has only a 1.5% share of the Australian gambling market. At the moment, the sector is dominated by Tabcorp’s TAB unit, Ladbrokes, and Sportsbet.
Sullivan has hinted that the gambling company will raise $50 million through the Initial Public Offering (IPO). This business is expected to grow quite a lot by 2025 — the targeted market share for that year is 5%. Naturally, the US sports betting expansion will help BlueBet catch up with other, more successful companies in the competitive betting market. However, it will be far from easy.
After the 2018 Supreme Court ruling that abolished the ban on residents betting on commercial sports, the US started opening up its sports betting sector. It is estimated that this industry will be worth at least $8 billion by 2025.
As of lately, investors have been more interested in the operators listed on the ASX. That’s why this is important for BlueBet, as its US exposure will help increase its status on the market. The gambling company’s plan will see it form joint ventures in smaller US states with mid-tier casino operators. This move will predominantly target operators that offer sports betting services but don’t necessarily have any experience running them.
Although BlueBet has a relatively small capital backing, it needs to keep up with some of the world’s largest companies and get through to the US casino operators’ existing customer base.
However, the US casino operators would first like to see the Australian gambling company establish itself in the local sports betting sector before collaborating with it. That’s why BlueBet has decided to target smaller US states like Maryland, Iowa, Colorado, Virginia, and Tennessee first as an independent bookmaker.
BlueBet’s CEO, Bill Richmond, will lead the US expansion of the company. In addition, Sullivan has revealed that the company has almost finalised the process of securing its first US sports betting licence. BlueBet will start offering services in the States as early as 2022, but we do not have any information about the exact location of its first US venture.