Mobile sports betting operator BlueBet announced late Sunday that it has received its sports betting license from the Iowa Racing and Gaming Commission (IRGC).
First Stage of US Entry Strategy
The license issued by the IRGC allowed ASX-listed BlueBet to take its first bet in Iowa under its ClutchBet brand Monday afternoon, making the state the first to become operational for BlueBet and marking a significant milestone for the company’s “Capital Lite” entry strategy in the US.
“This is a huge moment in BlueBet’s history,” commented Bill Richmond, chief executive officer of BlueBet, excited to announce that the company is bringing its sportsbook offering to sports fans in Iowa and confident that the fans “will respond well” to the company’s “first online offering and differentiated market positioning.”
The Australian mobile wagering operator has undergone a successful verification and testing process for its proprietary technology with Gaming Laboratories International (GLI) and has the platform to execute the first stage of its US entry strategy.
The launch in Iowa was made possible after BlueBet signed a five-year market access deal with the Dubuque Racing Association that operates the Q Casino and Hotel in July last year. The deal has an option for BlueBet to extend its duration by another five years.
“I would like to thank everybody who has made this moment possible, including our BlueBet team and valued partners in Iowa, the Dubuque Racing Association,” Richmond added.
By launching its B2C brand ClutchBet, BlueBet is looking to set an example of how the combination of its tech and operating team can run profitable sportsbook operations ahead of launches in Colorado, Louisiana and Indiana where market access has already been secured.
Second Stage of US Entry Strategy
Bluebet is not planning on extending its B2C offering outside of these four states as the company considers that its B2B differentiated offer is its best approach to the continuing to grow sports betting market in the US.
According to Richmond, the launch of the ClutchBet sportsbook in these four states will complete the first stage and shift the focus to the second stage of BlueBet’s US entry strategy – the launch of its labeled Sportsbook-as-a-Solution offer – and to execute on it, the company would need to enter into B2B partnerships.
Earlier today, BlueBet released its FY22 financial results and revealed that the business continued on the growth trajectory, posting turnover and wagering revenue growth of 48.5% and 53% year-over-year, respectively.