Online wagering company BlueBet Holdings (ASX: BBT) has inked its first-ever US business-to-business (B2B) sportsbook agreement with road course auto racing facility Green Savoree Mid-Ohio. Pending regulatory approvals, this deal paves the way for the launch of an online sportsbook in Ohio.
The initial five-year agreement will include BlueBet receiving annual fees based on a predetermined range of Sportsbook-as-a-Solution features provided. The arrangement transitions to a revenue share arrangement when gross gaming revenue exceeds an agreed-upon level.
BlueBet Chief Executive Officer, Bill Richmond, commented, “Our maiden US B2B agreement is a landmark moment for BlueBet, and the result of our significant investment in developing a market-leading technology platform and Sportsbook-as-a-Solution offer. This agreement continues BlueBet’s strong momentum in the US. Having recently gone live in Louisiana as we continue to grow our ClutchBet B2C brand in Iowa and Colorado, where bettors are being attracted by our differentiated branding and product.”
BlueBet is an international online wagering provider and bookmaker, with operations in Australia and the United States. In H1 FY24, the Company reported a negative EBITDA of $9.2 million, representing a 12.3% improvement year-over-year. The Australian side of the business is expected to be EBITDA positive by the end of FY24, thanks to gaining market share and implementing efficient marketing strategies. Overall, turnover was up by 6.9% to $298.7 million, fueled by growth in sports betting and horse racing wagers.
BlueBet also invested in a new marketing campaign featuring popular Australian media personality, Matt Nable. However, it’s worth noting that their cash reserves have dwindled from $22.6 million in the second half of FY23 to just $8.5 million by the end of H1 FY24.
Green Savoree Mid-Ohio, located in Lexington, Ohio, is a major motorsports facility. Established in 1962, it boasts a long history of hosting professional racing series and various other racing events. It hosts a number of premier professional racing series and other locally, regionally and nationally sanctioned race events. With a capacity exceeding 75,000, the facility also features The Mid-Ohio School, offering driving and motorcycle riding programs.
Under the agreement, the Company will provide its white-labelled turnkey Sportsbook-as-a-Solution and agreed managed services, to be branded as the “Mid-Ohio Sportsbook”, leveraging BlueBet’s unique proprietary technology platform and decades of experience running profitable sportsbooks.
Richmond added, “Continued growth of B2B partners will be key to driving long-term scale and profitability for BlueBet in the US under our differentiated two-stage “capital-lite” market entry strategy. We expect further opportunities to become available as we demonstrate the strength of our B2B offer in market.”
The agreement is a significant milestone in BlueBet’s differentiated “capital-lite” US market entry strategy. It also validates the attractiveness of BlueBet’s proprietary technology platform for prospective B2B partners. The platform’s scalability and multi-jurisdictional capability will provide a means to achieve profitable growth in the US over the long term.
It continues BlueBet’s strong momentum in the US, with the Company already present in Iowa, Colorado and Louisiana under its B2C brand, ClutchBet.
Alinda is a Business Reporter for The Sentiment
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