It has been a very disappointing month for the BlueBet Holdings Ltd (ASX: BBT) share price.
Since this time last month, the sports betting company's shares have shed 30% of their value.
However, it is worth noting that BlueBet's shares are still up 72% since its IPO in July.
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Why is the BlueBet share price sinking?
Investors have been selling down the BlueBet share price amid concerns over its expansion into the massive US market.
At the end of August, the company revealed that it had missed out on one of the 10 licenses made available in the state of Arizona.
Just a few days later, BlueBet advised that it has also missed out on one of the five licenses for the state of Virginia.
While Bluebet was not deemed ineligible for either state, its application simply wasn't strong enough compared to other applicants. In respect to Virginia, the company was advised that licenses were granted to operators which had experience in other states and equity interests owned by minority individuals or minority-owned businesses.
The company has a number of other states that it is now targeting. However, it is unclear whether it will be a similar story with those applications and that uncertainty is weighing on the BlueBet share price.
Is this a buying opportunity?
The team at Morgans remains positive on the BlueBet share price despite its license disappointment.
A note from earlier this month reveals that the broker has retained its add rating but trimmed its price target to $2.57.
Based on the current BlueBet share price, this implies potential upside of 31% for its shares over the next 12 months.
However, its analysts suspect that BlueBet may need some positive license news to cause a re-rating of its shares. As a result, investors may need to be patient with this one.
