BlueBet Holdings Ltd Signs First U.S. Sportsbook Agreement in Ohio

Online wagering provider, BlueBet Holdings Ltd (ASX: BBT) has signed its first U.S. business-to-business sportsbook agreement with Green Savoree Mid-Ohio, LLC to be their exclusive online sportsbook provider in Ohio.

The agreement is subject to regulatory licenses and approvals.

Mid-Ohio operates a comprehensive motorsports facility in Lexington, Ohio, located along the I-71 corridor between Cleveland and Columbus in North Central Ohio.

It hosts several premier professional racing series and other locally, regionally, and nationally sanctioned race events.

The track opened in 1962 and has a capacity of over 75,000. Mid-Ohio is also home to The Mid-Ohio School, offering driving and motorcycle riding instruction and experiences.

BlueBet will white label a turnkey Sportsbook-as-a-Solution to be branded as the “Mid-Ohio Sportsbook”.

This will leverage BlueBet’s unique proprietary technology platform and decades of experience running profitable sportsbooks.

Details

  • The agreement is for an initial five-year term.
  • BlueBet is to receive a fee per annum based on the agreed and future determination of a range of Sportsbook-as-a-Solution features provided by BlueBet.
  • This will transition into a revenue share arrangement when gross gaming revenue exceeds an agreed level.

BlueBet’s business model involves a ‘capital-lite’ U.S. market entry.

Its technology platform is built for prospective B2B partners to scale their businesses in multiple jurisdictions in the U.S.

It continues BlueBet’s momentum in the US, with the Company already live in Iowa, Colorado, and Louisiana under its B2C brand, ClutchBet.

BlueBet offerings are powered by a proprietary cloud-based technology platform.

Financials

For the first half year, Active Customers increased by 19% to 71,789. This pushed Group Turnover up 13.9% to $319.5 million. While the Net Win margin was at 9.6%.

The Cost Per First Time Depositor was reduced by 21% to $346.

EBITDA was ($9.2) million which improved by 12.3% vs. pcp. The directors said they expect the Australian business to be EBITDA-positive in FY24.

This was supported by the Net Win rate up 35% to 25 February 2024  on the pcp.

BlueBet held cash of $8.6 million at the end of December 2023.

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