Investors quick to back BlueBet after ASX listing

Australian sports betting operator BlueBet has made a flying start to life as a publicly traded company after listing on the Australian Stock Exchange (ASX).

The bookie, founded in 2015 by former Sportingbet.au CEO Michael Sullivan, commenced trading on Friday 2 July under the ticker BBT after completing an A$80m (£43m) IPO.

The IPO comprised of 70.2 million shares at A$1.14 per share, giving the company a market cap of A$228m upon listing.

Shares in the operator initially jumped 84% in early trading before settling down to register a 56% gain on its stock market debut.

BlueBet is led by CEO Bill Richmond, while ex-William Hill exec Sullivan is executive chairman. The business is thought to occupy a 1.5% share of the Australian sports wagering market at present.

Sullivan and co will be hoping public backing and access to external capital will fund a growth drive to increase that market share percentage, with a stated aim of 5% of the market by 2025.

The company is also eyeing gains in the US, a territory Sullivan has previously described as a “gold rush”.

BlueBet’s stateside strategy is to form joint ventures with mid-tier casinos in smaller states which have been awarded betting licences, starting with Iowa, Colorado, Maryland, Tennessee and Virginia.

The operator is expected to launch in the US in early 2022.

BlueBet currently owns commercial naming rights to the 22,500 capacity home stadium of the NRL’s Penrith Panthers.