BlueBet to complete first phase of US growth strategy following FY growth

| By Robert Fletcher
BlueBet Holdings has set out plans to build on year-on-year financial growth during its 2022 financial year by completing the first phase of its expansion strategy in the US market.

During the fourth and final quarter of the year, BlueBet signed a market access agreement with Caesars Entertainment, allowing it to conduct B2C online sportsbook operations in Indiana via its new ClutchBet brand announced earlier in the year.

BlueBet also has market access in Colorado, Iowa and Louisiana, and with the addition of Indiana to this roster, the operator said it can now complete the first stage of its two-stage “capital lite” US entry strategy with the ClutchBet brand.

The operator said there is significant opportunity for B2C expansion into other states, but its focus and capital will be directed towards the four initial states. It will also seek partners across the US for the launch of its white-label sportsbook-as-a-solution B2B (Saas) offer, in preparation for the second phase.

“BlueBet is ready to go-live in Iowa under the ClutchBet brand pending final approvals,” the operator said. “With platform testing successfully completed and final certification from GLI to shortly follow, the final step before receiving licence approval from the Iowa regulator is to complete geo-location testing. 

“Once complete, the company expects to have its licence approved in the coming weeks.”

The scheduled launches will follow a successful fourth quarter for BlueBet, during which its turnover – the amount wagered before winnings are paid out or losses incurred – increased 31.3% to $126.6m (£71.8m/€85.6m/US$87.7m).

Thoroughbred betting accounted for 47% of all wagers in Q4, with greyhound racing at 26%, harness racing 9% and other sports 18%. Players spent $68.3m betting via iPhones and $14.8m on Android devices, while $41.3m was spent on the BlueBet website and $2.3m through call centres.

In terms of gross revenue, this increased by 34.0% year-on-year from $12.7m to $17.0m, while the number of active customers increased by 64.2% to 53,328. 

The operator also noted net win for Q4 – the amount received from customers who placed losing bets, less the amount paid in placed winning bets and promotional costs – was 27.3% higher at $12.8m.

Looking at the full financial year, turnover was 48.5% higher at $511.9m, with gross revenue 59.5% up year-on-year to $70.5m. Net win for the year also increased by 53.6% to $54.6m.

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