Australian sports betting operator bookmaker BlueBet announced that it has secured its first gambling licence in the US, paving the way to a further expansion into the lucrative US sports betting market at a time when the company is heading to a listing on the Australian Securities Exchange (ASX) in July.
The company, established six years ago by Michael Sullivan, a familiar name to punters who has once been in charge of Sportingbet, is scheduled to open a public offering procedure on June 17th. The gambling company is expected to become public on the ASX on July 2nd, with a market value of approximately AU$220 million.
For the time being, BlueBet is still a small player in the Australian gambling market. It holds only a 1.5% share of the sector that is currently dominated by Tabcorp’s TAB unit, Sportsbet and Ladbrokes.
As revealed by Mr Sullivan, the small gambling company is set to raise AU$50 million through the Initial Public Offering (IPO). The business is aimed at growing into a profitable company with a 5% market share target by 2025, and an expansion into the US sports betting sector already on the go. Mr Sullivan, who headed the operations of Sportingbet and William Hill in Australia for 13 years, explained that BlueBet would catch up but it would not be easy.
BlueBet to Offer Sportsbook Services through US Casino Operator Partnerships
The US has started to open up to the sports betting sector following the 2018 Supreme Court ruling that annulled the ban under which local residents were forbidden to bet on commercial sports. The move created a market that is expected to be worth between A835 billion and $3.5 billion by 2025.
Lately, investors have become more interested in companies listed on the ASX that also have exposure to the US gambling industry. The Australian bookmaker PointsBet experienced a massive 560% increase in its share price since it held an IPO two years ago, while the betting technology provider BetMakers saw a sevenfold increase in its share price in the past 18 months.
For the time being, BlueBet plans to form joint ventures with mid-tier casino operators in smaller US states that already have sports betting licences but do not have any experience in running a sportsbook service. In addition, the marketing reach and existing customer base of US casino operators will give BlueBet a chance to stay competitive against the largest gambling companies in the world, even though it still has relatively small capital backing.
Normally, the operator’s potential partners would like to see the Australian gambling company prove itself in the local betting sector before joining forces with it. This is exactly why BlueBet first plans to start operation as an independent bookmaker in smaller US states, such as Colorado, Iowa, Virginia, Maryland and Tennessee.
The US expansion of the company is set to be led by BlueBet CEO Bill Richmond.
As revealed by the Australian gambling company’s boss, BlueBet had almost finalised its first sports betting licence in the US and is likely to start offering its services early in 2022. Mr Sullivan, however, refused to reveal in which state until the deal is officially closed.
- Author
Olivia Cole
