News Corp Australia and Tekkorp’s wagering venture called NTD Pty has agreed to purchase TexBet. TexBet is BetMakers’ SaaS platform customer and upon the completion of the purchase, BetMakers will receive IP and ownership rights and will support the migration to the NTD platform in exchange for a $2.5 million contribution.
The Joint Venture Will Launch Later This Year
When the initial deal was announced in April, it stated that News Corp will be in charge of running the venture and that it will be backed by Matt Tripp and Matt Davey.
Davey is the chairman and CEO of Tekkorp, while Tripp is a renowned digital betting pioneer. BetMakers’ OM Apps subsidiary would provide the necessary B2B platform tech and wagering solutions. According to BetMakers, the arrangements could lead to earnings higher than AU$300 million ($210 million).
The revenue share agreement would bring in around $80 million to BetMakers over the first 10 years of the deal.
Apart from the $2.5 million contribution, the deal between the parties will feature one additional amendment. The annual cap paid by NTD to OM Apps will be increased by AU$2 million ($1.4 million) and in doing so, the maximum cap will increase by AU$20 million ($14 million) in the 10-year period.
Current predictions state that the joint venture is set to launch in H2 of 2022 and the primary market focuses will be Australia and New Zealand. Davey and Robin Chhabra, the president of Tekkorp, will be joining NTD’s board of directors.
BetMakers’ Share Price Has Dropped Despite the Amendments
The new amendments did not help BetMakers as its share prices dropped by 2.17% and on Tuesday morning (August 16) they were $0.45. The downward trend has been ongoing for the company for a while now.
Over the past year, BetMakers’ share price has dropped by 62% and 45% year-to-date. However, that did not stop the company from signing deals that will allow it to expand. At the start of the year, the company teamed up with Century Casinos for racing content distribution.
At the start of May, its mission to expand in the US was successful as it launched fixed-odds and pari-mutuel horse racing bets to NJ. At the time of the launch, BetMakers also announced that it will launch a website and a mobile app for fixed odds bets.
Most recently, BetMakers was granted the rights to distribute racing data for the racing content by Penn National outside of the US and Canada. Kerry Gatten, the partnership manager at BetMakers, stated that the company is delighted to offer Penn’s first-rate content to a global audience.