Gambling group PointsBet is considering selling its Australian business to News-Corp-backed wagering startup Betr.
The $411 million company confirmed it is in preliminary discussions about a potential deal in a statement to the ASX on Wednesday morning, following a report from The Australian on Friday.
“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 statement said.
PointsBet group chief executive Sam Swanell has bet aggressively on US expansion and is now in preliminary discussions with new wagering group Betr over a potential sale of PointsBet’s Australian arm. Credit: Chris Hopkins
There is no certainty that these discussions will result in a binding transaction, it added.
Betr is headed by gambling entrepreneur Matthew Tripp, who built the Sportsbet and BetEasy brands in Australia, and former BetEasy executive Andrew Menz. It’s owned by News Corp, Las Vegas-based Tekkorp Capital and ASX-listed BetMakers Technology Group, which provides its technology. The sale would give Betr access to that technology as it continues to scale.
Betr held preliminary discussions with PointsBet earlier this year, but ended up buying online bookmaker TexBet in August for about $10 million after PointsBet rejected their $220 million bid.
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If the takeover was successful, Betr would gain about 232,000 Australian customers, who delivered more than $600 million in turnover in the September quarter. Betr launched over the Spring racing season with a 100/1 promotion for any bet to be used on the soccer World Cup and the Melbourne Cup.
PointsBet’s ASX-listed shares have fallen by more than 80 per cent over the past year to $1.34. A deal between the groups could be worth up to $250 million, but neither PointsBet or Betr would comment on the price negotiations.
On the international stage, PointsBet is currently the seventh-largest operator in America’s $13 billion-a-year sports betting market, with a 3.7 per cent share and is operational in more than 10 US states. A sale of the group’s Australian arm would free up the business to home in on its US expansion.
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