he Australian online sports betting operator, BlueBet, has reached a 5-year deal with the operator of Q Casino, the Dubuque Racing Association, to offer online betting in the state. This marks the first agreement that the Australian company has ever reached in the United States.
After the first initial 5 years of contract, BlueBet will have the possibility to renew for another 5 years.
“This is a significant milestone in BlueBet’s entry to the USA market”, commented BlueBet’s Chief Executive Officer, Bill Richmond. “We are taking a very considered, staged approach to market entry in the USA, and we are tremendously excited to be announcing this agreement with the Dubuque Racing Association”.
The approval-pending agreement has been categorized as a “skin” one, whereby BlueBet will operate as an extension of Q Casino.
According to a press release, the Australian company has identified up to five priority states in the USA for its initial market entry as a wagering provider, which are Virginia, Iowa, Colorado, Tennessee and Maryland. BlueBet is already awaiting a decision on a pending license application in Virginia.
The company selected Iowa as the initial target jurisdiction based on criteria which include: legalized state-wide online mobile gaming, low capital expenditure requirements, acceptable taxation and regulatory requirements, as well as significant populations.
BlueBet’s intentions are to pursue a B2C offering, which allows it to establish a footprint and optimise the team and products for the USA market.
“Iowa is a large wagering market with huge potential, and it perfectly fits our criteria”, added Richmond. “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”, he said.