Online wagering platform BlueBet Holdings [ASX:BBT] was up as high as 20% this morning after securing market access to a fourth US state.
BlueBet has signed a 10-year market access agreement with Caesars Entertainment to operate an online sportsbook in the US state of Indiana.
BBT shares rose as high as 20% on Tuesday on the news.
Despite today’s spike, BlueBet is still down 60% year-to-date:
Source: TradingView.com
BlueBet expands US market footprint
Bluebet’s wholly-owned subsidiary BlueBet Indiana has signed an online market access agreement with Horseshoe Hammond, a 400,000-square-foot casino in Indiana owned by casino giant Caesars.
The deal will allow BBT to operate a new online sporting platform for its ClutchBet B2C brand for a 10-year term, once regulatory approval and licensing has been passed.
This is now BlueBet’s fourth state it has gained access to.
The company said this allows it to complete the first stage of its US entry strategy.
The bookmaker’s focus will now switch to ‘executing in each of the four initial states’ and seek partners for the launch of BlueBet’s white label Sportsbook as a solution B2B product.
The wagering platform is expecting Iowa’s first bets in coming weeks, with Colorado and Louisiana expected to open by FY23’s second quarter, and Indiana in the second half.
BBT share price outlook
BlueBet commented that Indiana — with a population of 6.8 million — first legalised sports betting in 2019.
The state has generated $4.5 billion in wagering handle in the last 12 months.
BlueBet’s CEO, Bill Richmond, commented on the news:
‘BlueBet now has market access in four US states, which provides a strong platform to roll out our B2C brand, ClutchBet, and demonstrate the capability of our technology and team to run profitable sportsbooks in the US.
‘There is no shortage of opportunities for further B2C expansion in the US, but our focus and capital are pointed firmly towards executing in our initial four states as we seek partners for our Sportsbook-as-a-Solution B2B offer.
‘The size of the opportunity in the US continues to grow with Americans having bet $125 Billion on sports in the four years since legalisation. With many more states still to come online we could not be more convinced that our differentiated B2B offer is the best approach to access this opportunity in a disciplined and purposeful manner.
‘We are well funded to execute our Capital Lite US market entry strategy and remain highly confident in our ability to capture this huge market opportunity.’
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For Money Morning
