BlueBet looks for joint venture with casinos as part of US push

BlueBet is cautiously dipping its toe into the US market after enjoying booming conditions in Australia. Picture: iStock / Getty Images

Australian digital betting company BlueBet is believed to be considering a joint venture with casinos as part of its foray into the US market.

The company chaired by owner and founder Michael Sullivan is believed to be close to securing two betting licences in the US as it moves towards its plans for an initial public offering in June.

It is understood that talks have been held with mid-tier casinos that have no expertise in running sports books but have licences, and the plan is to form a joint venture with the operators.

Once BlueBet has established licences in two to three states, the understanding is that it would return to the casinos to work on a plan to embark on the joint venture.

Already, a director has been appointed for the US.

BlueBet is cautiously dipping its toe into the US market after enjoying booming conditions in Australia.

It has recently held meetings with 35 brokers for its IPO plans, which are said to have been met with overwhelming interest. The company’s prospectus is in the process of being finalised.

Parties are understood to have approached with offers to cornerstone the business, although expectations are that a cornerstone process will not occur for the IPO.

Ord Minnett and Morgans are working on the float.

Based in Sydney, BlueBet offers betting on all Australian and international racing and sport products, with all major bet types, including same game multis, same race multis and in-play betting.

It has at least 80,000 registered customers, 25,000 of which were active last year.

The technology has been used previously by major Australian and US market players.

Revenue has increased 63 per cent in the past year to $267m last year, as the number of bets placed surged in the last three months of 2020. The pricing of the IPO for the business will be set according to its Australian performance.

Currently, BlueBet’s share of the online wagering market is 0.6 per cent. It is expected to list with a market value of at least $200m.

Mr Sullivan was previously the chief executive of Sportingbet and Centrebet, which were the biggest bookmakers in Australia of their time.

Sportingbet was sold to William Hill for about $700m almost seven years ago, and Mr Sullivan later started BlueBet with the members of his original team.