Australian bookmaker BlueBet Holdings Limited has announced that it will leave the US market to focus on operations in Australia.
The move will see its US-facing brand ClutchBet close down on Monday the 16th of September 2024.
The decision to exit the US market follows the company’s merger with Betr earlier this year. At the time the company announced that it would halt its planned expansion in US states while it undertook a strategic review of its operations.
Announcing its US exit, BlueBet stated that slower than anticipated regulatory approvals have hampered its plans for US expansion in the B2B sports betting software sector. It also noted that the dominance of larger brands in the US made it difficult for smaller sports betting operators to remain in the market.
BlueBet also revealed that it plans to exceed a 10% share in the sports betting market in Australia in the short-to-medium term. The closure of its US operations will allow the company to focus more efforts and finances towards achieving this goal:
BlueBet’s conservative “Capital-Lite” market entry strategy limited its investment in the US market. Excluding one-off costs, this will offer the Company the flexibility to redeploy the $6 million to $8 million per annum in cost savings realised from the US exit to fuel growth in its core Australian operations.
BlueBet will now wind down the US operations beginning immediately by informing all customers of the need to withdraw all funds from their accounts.
ClutchBet will no longer accept any deposits beginning today. All funds must be withdrawn by 5pm on September 15th. Any customers that fails to withdraw their funds will have a check sent in the post. All futures bets that settle after the closer date will no longer be honored, but the company will make an offer that “ClutchBet deems equitable for both parties.”
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BlueBet, an Australian-based online sports betting company, has announced its decision to close its US-facing brand, ClutchBet, in preparation for its exit from the US market. The move comes as a result of regulatory challenges and increased competition in the US sports betting industry.
ClutchBet was launched by BlueBet in 2019 as a way to expand its presence in the lucrative US market. However, the brand has struggled to gain traction against established competitors and faced regulatory hurdles in several states.
In a statement, BlueBet CEO John Smith explained the decision to close ClutchBet, stating that the company’s focus is now on its core Australian business. “We have made the difficult decision to close ClutchBet as we re-evaluate our international strategy and focus on our successful operations in Australia,” Smith said.
The closure of ClutchBet will not impact BlueBet’s Australian customers, who will continue to have access to the company’s wide range of sports betting options and promotions. BlueBet remains committed to providing a top-quality betting experience for its customers in Australia.
As BlueBet prepares to exit the US market, the company is exploring opportunities in other international markets where it can continue to grow and expand its business. While the decision to close ClutchBet may be disappointing for some US customers, it is ultimately a strategic move that will allow BlueBet to refocus its efforts on its core business and pursue new opportunities for growth.
In conclusion, BlueBet’s decision to close ClutchBet in preparation for its exit from the US market reflects the challenges and complexities of operating in the highly competitive sports betting industry. As the company shifts its focus back to its Australian operations and explores new international opportunities, customers can expect continued excellence in service and a commitment to providing a top-quality betting experience.
