In a major stride towards its ‘Capital Lite’ US market entry strategy, mobile-first online wagering provider BlueBet Holdings (ASX: BBT) said that its wholly-owned subsidiary, BlueBet Louisiana LLC is now licensed to operate in Louisiana. Under the ClutchBet B2C brand, the subsidiary has already accepted its first wagers, marking Louisiana as the third US state to embrace ClutchBet, following successful ventures in Iowa and Colorado.
ClutchBet will continue its successful hyper-localised marketing strategy in Louisiana, including sponsorship and activations delivering economic growth in other states.
BlueBet Chief Executive Officer, Bill Richmond, commented, “Going live in Louisiana, our third US state, caps off another strong 12 months for BlueBet, as we execute our ‘Capital Lite’ US market entry. As we land and expand in each new US state, we continue to refine and enhance our approach, which is delivering faster growth and making us even more capital-efficient. This is further enabled by our proprietary ‘BlueBet Global Platform’, which provides unique scalability and multijurisdictional capabilities.”
With Louisiana added to its portfolio (albeit a month later than planned), ClutchBet now enjoys access to a combined population of over 14 million people. The ‘BlueBet Global Platform’ plays a pivotal role, providing scalability benefits and facilitating swift B2C rollouts in each new market.
BlueBet’s momentum in the US market is evident as it progresses towards the launch of the second stage of its entry strategy—a white-labelled B2B Sportsbook-as-a-Solution offer. Talks are underway with multiple potential B2B partners, with Richmond emphasising the crucial role this offer plays in achieving scale and profitability in the US.
He added, “This launch brings us closer to completion of the first stage of our ‘Capital-Lite’ US market entry strategy, as discussions progress with multiple potential partners for our white labelled B2B Sportsbook-as-a-Solution offering. I would like to thank our partners in Louisiana, the Rubico Acquisition Corporation, owner of Louisiana Downs casino and horseracing track, for choosing to partner with BlueBet.”
Recently, there has also been speculation that BlueBet would merge with another Aussie bookmaker Betr. According to the AFR report, two sources in the wagering industry suggested that BetR expressed an interest in acquiring BlueBet, but others noted that a successful deal would likely take the form of a merger. However, BlueBet responded, dismissing any immediate changes, saying, “BlueBet is regularly involved in discussions with third parties regarding strategic initiatives, including Betr, aimed at maximising value for its shareholders. While discussions may occur, there can be no certainty that any transaction will eventuate.”
This comes as, in 2023, the Australian Government implemented multiple gambling reforms—from the ban on credit card use for gambling to a national self-exclusion register, consistent messaging informing customers of the risks of gambling and more. Coupled with the increased cost of living and reduced discretionary spending, wagering has been moved to the sidelines, and companies are looking to cut their losses.
Thankfully, the gambling landscape in the US does not paint such a grim picture. Online wagering there is forecast to achieve $34.8 billion in revenue this year. In comparison, Australia is set to rake in about $15 billion.
As BlueBet celebrates its Louisiana launch, the Company sets its sights on Indiana for its next venture, continuing its strategic expansion in the dynamic US market.
Alinda is a Business Reporter for The Sentiment
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