In yet another example of market consolidation in the domestic digital sports betting industry, Aussie-based ClutchBet has announced it has terminated its presence in the U.S. mobile gaming industry.
ClutchBet Waves Goodbye
The industry pundits predicted a wave of market consolidation in the U.S. mobile sports betting industry and we have seen precisely that this year, with ClutchBet being the latest casualty. The Australian-based subsidiary of BlueBet Holdings Limited announced it would be taking its last wager on Monday, September 16th, and exiting its existing markets in Colorado, Iowa, and Louisiana.
In a post, dated August 29th on X, ClutchBet stated:
“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. Players will no longer be able to deposit after Friday, August 30 and are encouraged to withdraw or wager any remaining funds in their account prior to the shutdown date.”
In another statement the company apologized to its customers, saying, “The team at ClutchBet apologizes for any inconvenience caused by this shutdown and thanks you for understanding during this time. 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.”
BlueBet projects a $6 million to $8 million annual savings by leaving the American gaming market and to “focus its capital and operational efforts” on its native Australia. The two-year battle to gain traction in a fiercely competitive U.S. mobile gaming market was a bridge too far for ClutchBet but it is just another in an increasingly long line of small players that have gotten muscled out of the American 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 Technology Partners With Betr
Although the ClutchBet mobile sportsbook is no longer in the U.S. market, the parent company, BlueBet, is focused squarely on expanding its footprint in Australia. One of those assets is Australia’s Betr, not to be confused with YouTuber-turned-boxer Jake Paul’s micro-betting Betr based in the United States.
“The completion of BlueBet’s transformational merger with Betr marks a significant moment for the company and our shareholders,” Sullivan said.
“With our businesses now combined, we are highly focused on becoming a major player in the Australian wagering market, leveraging our market-leading technology and experienced and talented team.
“Integration between the two businesses is our primary focus, with the team working hard to rapidly deliver on the growth opportunities and synergies unlocked by the merger. I look forward to updating shareholders on our progress at our full-year results in August.”
BlueBet will continue to push its proprietary technology platform that can be adopted by other mobile sportsbooks around the globe.
“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.
