Virginia Blues: BlueBet Withdraws Application For VA Sports Betting Permit

BlueBet, a potential sportsbook in Virginia, is likely experiencing disappointment after being compelled to abandon its initial plans in the state.

BlueBet Holdings was deemed ineligible for a permit by the Virginia Lottery.

Following the guidance of the VA Lottery, the Australian mobile wagering operator decided to retract its sports betting application, consequently leading to a refund of all the fees paid by the company from the Virginia Lottery.

Nevertheless, this setback represents yet another significant obstacle for a company striving to establish a presence in the United States.

Virginia cites lack of US experience for BlueBet

On Monday, the Australian publicly-traded company, BlueBet, made an announcement regarding the Virginia news.

BlueBet was deemed ineligible for a permit due to their lack of requisite experience in the United States, as stated in the brief announcement.

As officials stated:

The BlueBet Board was advised by the regulator that licenses would only be granted to operators who possessed experience in other states and had equity interest owned by either Minority individuals or Minority-owned businesses.

Due to its lack of both, BlueBet has suffered a decline in its stock price as a result of its setback in the US.

Although the company’s Virginia blues present a challenge, a potential silver lining is that BlueBet has the opportunity to re-apply for a permit at a later date.

Becoming a future mobile sports betting operator in Virginia is still a possibility if it accumulates sufficient experience in the US.

BlueBet’s plans for DMV

Although BlueBet provides wagering products for 31 sports in Australia and certain international markets, it has made limited progress in targeting the US market, which remains its primary focus.

BlueBet has just finalized a partnership agreement with Q Casino in Dubuque, paving the way for its grand entrance into the Iowa market in early 2022. This move holds significant potential for the company, as Iowa ranks among the top 10 states in the US for sports betting.

BlueBet has expressed interest in expanding its operations to other states, as confirmed by company officials. Aside from Colorado, they are targeting Tennessee and Maryland. Additionally, they have their sights set on ten other US states that may soon legalize sports betting.

Nevertheless, they have not yet established potential schedules for any of those markets.

BlueBet’s recent attempt to secure an Arizona sports betting license fell short.

Competition for remaining VA sports betting permits

Virginia now has space for additional sportsbook operators following legislative clean-up efforts.

Due to the exclusion of sportsbooks associated with future Virginia casinos from the mobile license limit of 12, five additional sports betting permits can now be distributed.

There are currently 18 applicants competing for the remaining spots, as stated by the VA Lottery.

In Virginia, Barstool Sportsbook has joined the ranks of sportsbook operators as the eighth to go live. While Bally’s Corporation and Golden Nugget Online Gaming VA have obtained permits, they are yet to launch their operations and start accepting wagers in the Old Dominion.

Despite the fierce competition in the market, Virginia’s monthly sports betting handle has consistently decreased over the summer months, reaching an unprecedented low point.

Nevertheless, these numbers are expected to bounce back shortly due to the anticipated comeback of the beloved NFL and college football seasons, along with the imminent return of the NBA and NHL.