Australian gambling startup Betr is in preliminary discussions with PointsBet for the acquisition of the operator’s Australian business, according to a PointsBet filing to the Australian Securities Exchange (ASX) on Wednesday.
Potential Sale Discussions Underway
The potential sale of PointsBet Australia was first reported by The Australian on Friday and today the gambling group officially responded in a filing to the ASX, stating that the parties are discussing a potential sale.
“PointsBet confirms that it is currently in discussions with [the] owners and operators of Australian wagering operator Betr, regarding a potential transaction involving the sale of its Australian trading business and notes that any potential transaction will be assessed in the context of PointsBet’s global strategy and opportunities,” the ASX-listed gambling group stated in the filing.
Headed by prominent Australian bookmaker Matthew Tripp who built the Sportsbet and BetEasy brands and former BetEasy executive Andrew Menz, Betr tested the waters earlier this year with an offer in the region of AU$220 ($148.5 million) and AU$300 million ($202.5 million) according to industry sources.
PointsBet rejected the bid without putting it shareholders and Betr ended up buying online bookmaker TexBet for about AU$10 million ($6.75 million) in August but its owners have not given up on acquiring the business.
Pointsbet added in the ASX filing that “there is no certainty that these discussions will result in a binding transaction” with the sports betting startup owned by heavyweight industry investors such as News Corp, Las Vegas-based Tekkorp Capital, and ASX-listed BetMakers Technology Group.
Rupert Murdoch’s News Corporation, which has a small presence in the wagering scene through the ownership of racing sites Punters.com and Racenet, recently upped its stake in Betr to nearly 50%. News Corp also signed a partnership with Matthew Tripp earlier in the year.
New Customers and Technology
Valued at AU$411 million ($277.4 million) PointsBet Australia boasts a customer base of 232, 000 Australians who helped it generate in excess of AU$600 million ($405 million) in turnover in the quarter ended September 30, 2022. In addition, the sale will allow Betr access to the technology provided by BetMakers to help the brand continue to scale up its business.
Following the announcement, PointsBet’s share price jumped by 7% to regain a small portion of what was lost over the past year when it sunk by more than 80%. Pointsbet’s shares changed hands at AU$1.40 ($0.945) on market close, ending up 4.5% for the day.