Why the BlueBet (ASX:BBT) share price is crashing 13% lower today

The BlueBet share price is under pressure on Monday…

| More on:
gambling asx share price fall represented by woman in soccer had looking frustrated at tablet screen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BlueBet Holdings Ltd (ASX: BBT) share price has been a disappointing performer on Monday.

In morning trade, the sports betting company's shares were down as much as 13% to $2.43.

The BlueBet share price has recovered a touch since then but remains down 7.5% to $2.60 at the time of writing.

Why is the BlueBet share price under pressure?

Investors have been selling down the BlueBet share price today after its US ambitions were dealt a blow.

According to the release, the company's US business and its partner Colorado River Indian Tribes (CRIT) have been unsuccessful in their application for one of the 10 licences to operate an online sportsbook in the state of Arizona.

The release explains that the number of licences awarded to Tribes in Arizona was capped at 10, and although it met the requirements of a qualified event wagering operator, it missed out after a competitive process which considered a range of factors.

One small positive, though, is that BlueBet's agreement with CRIT remains in place if further event wagering licences become available in the future.

Furthermore, management notes that securing an Arizona licence at this time would have been an unexpected addition to its USA entry strategy and was not factored into its USA business plan, which remains unchanged.

It is also worth noting that rival Pointsbet Holdings Ltd (ASX: PBH) revealed that it also failed to secure a licence in Arizona today.

What else did the company announce?

Management also provided an update on its licence application for the state of Iowa.

That application remains on track after its Advanced Deposit Sports Wagering Operator agreement with Q Casino was approved by the Iowa Racing and Gaming Commission on Friday.

But management isn't resting on its laurels. In addition to Iowa, BlueBet has identified a further four priority states in the USA for licences: Virginia, Colorado, Tennessee and Maryland. It notes that these states have an aggregate population of over 27 million people.

Despite today's pullback, the BlueBet share price is up 128% since its IPO in July.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Miner looking at a tablet.
Resources Shares

Why is the South32 share price taking such a shellacking today?

A whale move might be behind today's big slump.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Breville, Domino's, Liontown, and WiseTech shares are falling today

These shares are out of form on Tuesday. What's going on?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why CAR Group, Domino's, JB Hi-Fi, and WiseTech shares are dropping today

These shares are having a tough start to the week. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Beach Energy, McMillan Shakespeare, News Corp, and Pilbara Minerals shares are falling today

These shares are ending the week in the red. But why?

Read more »

A young boy with a sombre face looks down at the zip fastener at the bottom of his jacket as he concentrates on unfastening the clasp.
BNPL shares

Should you buy the 34% dip on Zip shares?

After crashing 34% in a month, what’s next for Zip shares?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Beach Energy, Myer, Pexa, and Pinnacle shares are falling today

These shares are under pressure on Thursday. What's going?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Block, Canyon, Fisher & Paykel Healthcare, and Mesoblast shares are falling today

These shares are having a tough time on hump day. What's going on?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Fisher & Paykel Healthcare, Magellan, Resolute Mining, and Westgold shares are sinking today

These shares are starting the week deep in the red. But why?

Read more »