BlueBet had put forward a submission for a licence and paid all the relevant application fees but was informed by the Virginia Lottery that it was not eligible.
The Virginia Lottery said that licences would, at this stage, only be granted to operators that had experience in other US states and have equity interest owned by minority individuals or minority-owned businesses.
To date, the Virginia Lottery has received 18 applications for five available licences in the state.
As such, BlueBet withdrew from the licensing process and will have all of its application fees refunded.