Here’s why the BlueBet (ASX:BBT) share price soared 15% higher today

An in to the US market is a win for this wagering company, and is proving popular with shareholders.

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The BlueBet Holdings Ltd (ASX: BBT) share price surged more than 15% today to a record high.

Shares in the wagering company have continued their miraculous run after listing on the exchange earlier this month.

Let’s take a look at what’s been fuelling the BlueBet share price.

What’s fuelling the BlueBet share price?

BlueBet has not released any price-sensitive news that could explain today’s bullish activity.

However, several catalysts could explain why investors are jumping for shares in BlueBet.

The BlueBet share price received a boost after providing the market with an update on its US operations.

In the update, BlueBet highlighted its agreement with the Dubuque Racing Association.

Through this agreement, the company will be allowed to conduct online sportsbook operations in the state of Iowa.

Although subject to regulatory approval, the agreement opens an avenue to the lucrative US market. BlueBet’s management notes that the Iowa wagering market has grown by more than US$1 billion following the approval of sports betting in 2019.  

According to BlueBet, the US market is projected to be worth between US$8.5 billion to US$13.5 billion.

Supplementing its US agreement, the BlueBet share price has also received a favourable outlook from brokers.

Analysts from leading broker Ord Minnet recently put a buy rating on the company’s shares. Analysts highlighted that BlueBet is positioned for growth given the shift of sports betting online and the company’s expansion into the US.

More on BlueBet

BlueBet is an online bookmaker that provides both Australian and international sporting products to customers.

BlueBet offers wagering products on 31 sports in Australia and internationally, in addition to entertainment and politics wagering markets.

The company’s IPO saw BlueBet raise $80 million after selling 70.2 million shares for $1.14 apiece earlier this month.

Following its listing, BlueBet highlighted that the company plans expand its Australian operations and push into the US market.

Snapshot of the BlueBet share price

At the time of writing, the BlueBet share price is trading more than 2.66% higher at $2.32. Shares in BlueBet were up more than 15% earlier after hitting an intraday and all-time high of $2.63.

Shares in the wagering company have surged more than 25% since listing on the exchange earlier this month.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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