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.
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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.
