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BlueBet Holdings (ASX:BBT) pursues Arizona online sports betting licence

Consumer Discretionary
ASX:BBT      MCAP $67.77M
10 August 2021 11:20 (AEST)

BlueBet Holdings (BBT) has teamed up with BlueWater Resort & Casino and Colorado River Indian Tribes (CRIT) to pursue an online sports betting licence in Arizona.

The parties have already applied for a licence, with the outcome expected in the next four weeks.

In April, online sports betting in Arizona was made legal by Governor Doug Ducey. The launch date is expected on September 9, which is in line with the upcoming NFL season.

Under the Sports Wagering Act, only 20 sportsbooks are allowed to operate in Arizona, with the licences being split between professional sports teams/sites and the state’s tribal casinos.

Key features in BlueBet’s application include annual community fund donation, BlueBet to be the designee for CRIT and BlueWater Resort & Casino and the new online sportsbook would be offered through BlueBet’s mobile app and website platform.

Notably, the parties have pitched a term of ten years.

BlueBet’s Chief Executive Officer, Bill Richmond, is pleased to announce this agreement within the first two months of the company’s IPO.

“We see Arizona as a fantastic next step for BlueBet in the US. The opportunity is particularly advantageous because Arizona is such an unpenetrated market, with no existing operators despite it being a state of sports fanatics,” Mr Richmond said.

“Arizona’s population is twice that of Iowa, where we have our first US skin and where the sports betting market is estimated to have gaming revenue worth more than a billion US dollars per year, so this agreement represents a significant escalation in our push into the US.”

Additionally, BlueBet have entered the FY22 with strong momentum. The Australian business delivered unaudited net revenue for FY21 of $32 million.

On the market today, BlueBet was up 7.61 per cent, trading at $2.05 per share at 10:49 pm AEST.

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