An Australian-owned online sports betting operator is exiting the U.S. market after failing to overcome hurdles in three states.
ClutchBet, owned by BlueBet, announced that it is no longer taking deposits as of Friday in Colorado, Iowa, and Louisiana and will cease accepting wagers at 7:00 p.m. ET on Monday, Sept. 16.
We regret to inform you that following an extensive strategic review, ClutchBet Sportsbook has made the difficult decision to shutdown its operations in the United States and will no longer be accepting bets after 5pm MT on Monday, September 16.
— ClutchBet (@ClutchBetSB) August 29, 2024
Players will no longer be able… pic.twitter.com/HzVKFIn8R3
BlueBet announced that closing ClutchBet in the U.S. allows the company to "focus its capital and operational efforts" on Australia. Excluding one-off costs, BlueBet expects to save between $6 million and $8 million annually which it will redeploy into the Australian market.
"The decision to exit the U.S. comes as slower than expected regulation has hampered total market growth and hindered interest in the Company’s B2B SaaS platform, which BlueBet viewed as a significant opportunity," the company wrote in a statement.
BlueBet said that smaller operators are "unable to achieve necessary unit economics" and added that this is "driving a recent wave of consolidation and exits, which is likely to continue" into 2025.
In Iowa’s July reported revenue, ClutchBet’s handle of just over $469,000 accounted for 0.3% of the Hawkeye State’s total amount wagered for the month. Neither Colorado nor Louisiana, where ClutchBet launched earlier this year, released individual operator figures.
Keeping a presence in the U.S.
BlueBet’s decision comes on the heels of a strategic review that led to other changes. ClutchBet terminated a partnership in July that would’ve given the online sportsbook market access in Indiana.
However, BlueBet does intend to continue pushing its betting technology in the U.S.
The company partnered with Betr in April to provide its platform to the sports betting and daily fantasy operator co-founded by boxer/social media influencer Jake Paul and micro-betting industry executive Joey Levy.
"Importantly, the company maintains ownership of its highly scalable, proprietary international sportsbook technology and will continue to pursue further monetization of its technology assets in the U.S. and internationally," BlueBet said.
Getting out
Customers are encouraged to withdraw funds before betting ends on Sept. 16. Any money left in accounts will be sent to customers via a mailed paper check.
Players with open future wagers are asked to contact ClutchBet before Sept. 16 to reach an offered settlement.
"The team at ClutchBet apologizes for any inconvenience caused by this shutdown and thanks you for understanding during this time," the company said. "We’re grateful for all the ClutchBet players who joined us along this journey over the past two years and wish you the best success moving forward."
