""US Sports"" – Google News
Australian sports betting company BlueBet announced that it has secured its first US gaming license, paving the way for further expansion into the lucrative US sports betting market, while the company listed on the Australian Securities Exchange (ASX) in July.
The company, founded six years ago by Michael Sullivan, a household name for players who was once responsible for Sportingbet, is expected to open a public bidding process on June 17th. The gaming company is expected to go public on July 2nd on the ASX with a market value of approximately A $ 220 million.
BlueBet is still a small player in the Australian gambling market for the time being. It only holds a 1.5% stake in the sector currently dominated by Tabcorp’s TAB unit, Sportsbet and Ladbrokes.
As announced by Mr. Sullivan, the small gaming company will raise A $ 50 million through the initial public offering (IPO). The aim of the business is to grow into a profitable company with a market share target of 5% by 2025 and to expand into the US sports betting sector already now. Mr Sullivan, who ran Sportingbet and William Hill’s operations in Australia for 13 years, said BlueBet was catching up but it wasn’t easy.
BlueBet offers sports betting services through US casino operator partnerships
The US has begun opening up to the sports betting sector after the 2018 Supreme Court ruling lifted the ban that banned residents from betting on commercial sports. The move has created a market that is expected to be worth between A835 billion and $ 3.5 billion by 2025.
Recently, investors have shown increasing interest in ASX-listed companies that are also involved in the US gaming industry. Australian bookmaker PointsBet has seen its share price jump 560% since it went public two years ago, while betting technology provider BetMakers has increased its share price sevenfold in the past 18 months.
BlueBet is initially planning to set up joint ventures with medium-sized casino operators in smaller US states that already have sports betting licenses but have no experience in operating a sports betting service. In addition, the US casino operators’ marketing reach and existing customer base will give BlueBet a chance to stay competitive with the world’s largest gaming companies, even though it still has a relatively low capital base.
Usually the operator’s potential partners want the Australian gambling company to prove their worth in the local betting sector before partnering with it. It is precisely for this reason that BlueBet plans to start operating as an independent bookmaker in smaller US states such as Colorado, Iowa, Virginia, Maryland and Tennessee.
The company’s expansion in the US is to be led by BlueBet CEO Bill Richmond.
As the head of the Australian gambling company announced, BlueBet had almost completed its first sports betting license in the USA and is expected to offer its services in early 2021.
Olivia Cole has worked as a journalist for several years. In the past few years she has written about a number of industries and developed an interest in the UK gambling market.