Mobile betting provider BlueBet Holdings (ASX:BBT)
has signed an agreement with Dubuque Racing Association, which operates the Q Casino in Iowa.
Under the agreement, BlueBet will initiate an online sportsbook in Iowa, pending regulatory approval and licensing, as an extension of Dubuque's existing casino licence. The licence extension is for an initial term of 5 years. Dubuque Racing Association will be paid a portion of the revenues.
BlueBet was launched in 2015, and listed in July 2021. It has offices in Sydney and Darwin, and provides wagering services via its website and its smartphone apps.
BlueBet CEO Bill Richmond comments: "We are taking a very considered, staged approach to market entry in the USA... We are initially launching a B2C business to demonstrate both the capability of our technology and our team, both of which have been honed by years of successful operation in Australia, ahead of moving to our Sportsbook-as-a-solution offering in the USA. This strategy allows us to access the tremendous USA opportunity without large ongoing capital expenditure.
"Iowa is a large wagering market with huge potential, and it perfectly fits our criteria. Since sports betting was approved by the Iowa legislature in August 2019 it has grown rapidly to a US$1bn+ market in FY21, 85% of which is now placed through mobile or online."
Shares in BlueBet are trading 5.2 per cent higher at $1.73.