Fresh off their merger with betr, which will see a combined business rebrand shortly, wagering operator BlueBet (ASX: BBT) has confirmed its decision to concede it’s international expansion ambitions by exiting the US market and concentrating solely on Australia.
The move mirrors a trend seen among smaller Australian betting firms like PointsBet (ASX: PBH), which struggled to navigate the costly and fragmented regulatory landscape across individual US States, each running their own process to secure approval to accept bets in the respective States. In most cases, the approvals have taken years to secure and consumed millions of dollars through the process before accepting a single bet, of which both BlueBet and PointsBet have failed in some States to even get that approval.
The decision follows a strategic review initiated in April 2024, soon after BlueBet’s merger with betr. While the merger created a leading Australian wagering operator, combining BlueBet’s technology with betr’s customer base and leadership, the US market has proven to be less lucrative than anticipated.
BlueBet had entered the US market with a conservative, “Capital-Lite” approach, minimising investment to mitigate risks. However, BlueBet’s latest analysis indicates that market conditions are not conducive to long-term success for smaller players.
The Company stated that the US market’s slower-than-expected regulatory progress has stifled growth opportunities. Industry dynamics, with global players dominating the US market, have made it increasingly difficult for smaller operators to achieve the necessary unit economics. As a result, BlueBet is following in the footsteps of PointsBet, which also exited the US earlier this year due to similar challenges.
Despite the US exit, BlueBet remains confident about its future. By pulling out of the US, the Company anticipates annual cost savings of approximately $6 million to $8 million. This capital will be redirected to fuel growth in its core Australian operations, which remain central to the company’s strategy moving forward.
BlueBet reaffirmed its objective of capturing more than 10% of the Australian market in the short to medium term. The Company believes that its expertise in building and scaling wagering operations, alongside continued investment in its proprietary technology, will enable it to deliver exceptional experiences for customers and create value for shareholders.
It comes just one day after Australia’s largest wagering operator, Tabcorp (ASX: TAH) reported a $1.36 billion net loss after tax, citing a weak wagering market in Australia and difficulties competing with digital-only brands – such as BlueBet and betr
As BlueBet exits the US market, it will also undergo a significant rebranding, adopting the name and branding of betr for its Australian consumer-facing operations. The rebrand follows extensive research that revealed strong recognition of betr’s youthful and dynamic brand in the Australian market.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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