iGaming Operator BlueBet Terminates Partnership With Indiana’s Horseshoe Hammond

Article by : Erik Gibbs Jul 3, 2024

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BlueBet, an Australian bookmaker and online gambling operator, has officially decided to terminate its market access agreement with Horseshoe Hammond in Indiana. This decision was publicly announced on Monday, marking a significant shift in BlueBet’s strategic approach to its US operations.

The termination of the agreement means that BlueBet will no longer pursue the launch of its sports betting services in Indiana, commonly known as the Hoosier State. The decision to withdraw from the Indiana market was made following an in-depth strategic review of BlueBet’s US operations, which concluded on June 30.

The review aimed to optimize the company’s focus and resources by prioritizing markets where it already has an established presence and better growth prospects. As a result of this review, BlueBet has decided to concentrate its efforts on enhancing and expanding its business-to-consumer markets, specifically in the states of Colorado, Louisiana and Iowa.

In these states, BlueBet provides sports betting operations under its ClutchBet subsidiary.

ClutchBet is responsible for delivering a range of sports betting services, leveraging BlueBet’s proprietary technology to offer a competitive and user-friendly experience for sports bettors in these regions.

The focus on these states reflects BlueBet’s strategy to build stronger market positions where it has already established regulatory and operational foundations. Despite withdrawing from Indiana, BlueBet is actively growing its business-to-business (B2B) operations in the Midwest, demonstrating a diversified approach to its expansion strategy.

Earlier in the year, BlueBet announced its first US B2B sportsbook deal with Green Savoree Mid-Ohio, a notable development for the company. The partnership aims to launch online sports betting operations in Ohio, contingent on securing the necessary regulatory licensing and approvals.

Green Savoree Mid-Ohio is a nationally sanctioned professional motorsports facility located in Lexington, Ohio. The facility, which opened in 1962, boasts a seating capacity of more than 75,000, making it a prominent venue for motorsports events and a strategic partner for BlueBet’s B2B ambitions.

The collaboration will see the development and launch of “Mid-Ohio Sportsbook” using BlueBet’s advanced proprietary technology, designed to provide a robust and reliable sports betting platform. The agreement between BlueBet and Green Savoree Mid-Ohio is initially set for a five-year term.

During this period, BlueBet will receive an annual fee based on an agreed and future determination of a comprehensive range of sportsbook-as-a-solution features provided by BlueBet.

As the business grows and revenue reaches a specified threshold, the fee arrangement will transition to a revenue share model, aligning the interests of both parties and incentivizing mutual success.

BlueBet is also focusing on bolstering its business in Australia through a binding sales agreement to acquire Betr, a strategic move aimed at creating a leading Australian wagering operator.

The acquisition will involve BlueBet issuing approximately $265.4 million in fully paid shares to Betr shareholders, signifying a substantial investment to strengthen its market position. This merger is intended to combine the strengths of both companies, leveraging their combined expertise and resources to capture a larger share of the Australian wagering market.

The merger with Betr has been a key factor prompting BlueBet’s comprehensive strategic review, which ultimately led to the decision to exit the Indiana market.