The BlueBet Holdings Ltd (ASX: BBT) share price has had a torrid past week.
In the last 7 days, shares in the wagering company have tumbled more than 8%.
Let’s take a look at what’s been dragging the BlueBet share price lower.
BlueBet shares tank on US expansion blows
Shares in BlueBet have struggled in the past week, tanking more than 8% since last Wednesday.
Despite not releasing any price-sensitive news in the past week, much of the selling is attributable to a couple of catalysts.
Earlier this month, BlueBet announced a blow to its US expansion plans, hammering the share price.
The mobile sports betting company announced that it had withdrawn its application for a sports betting permit in Virginia.
On advice from the regulator, Virginia Lottery, BlueBet pulled out of the licencing process.
The regulator noted that licences are granted to operators with experience in other US states.
The BlueBet share price received another setback late last month following an unsuccessful application for online sports betting in the state of Arizona.
More on the BlueBet share price
BlueBet is a mobile and online bookmaker that provides wagering products on Australian and international racing and sports.
The wagering company’s products include 31 sports in Australia and internationally, plus entertainment and politics markets.
The company’s products are powered by a cloud-based technology platform.
Before its recent slump, shares in BlueBet were flying at all-time highs.
Despite setbacks in its US expansion plans, the wagering company was buoyed by solid results for FY21.
An 83.3% increase in revenue of $344.7 million was a highlight in BlueBet’s full-year report.
Other highlights from the company’s report included:
- Wagering revenue (net win) up 92.5% on pcp to $35.6 million
- Active customers up 45.7% on pcp to 32,472
- Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 48.4% on pcp to $7.5 million
- Net profit after tax down 33.6% on pcp to $3.0 million
BlueBet noted that results for FY21 exceeded its prospectus forecasts and were driven by strong growth in Australian market share.
The company also highlighted its plans to expand into the lucrative US market.
At the time of writing, shares in BlueBet are trading more than 2% higher for the day.