BetMakers Makes $4b Play For Tabcorp Wagering Arm

THE sale of Tabcorp’s wagering and media arm is one step closer following the news that BetMakers has submitted a $4b offer for the business.

Adam Dobbin

28 May 2021

THE sale of Tabcorp’s wagering and media arm is one step closer following the announcement that BetMakers has submitted a $4 billion offer for the ailing business.

On Friday, Tabcorp released a statement to the Australian Stock Exchange, detailing BetMakers’ non-binding indicative proposal which comprises $1 billion in cash and a further $3 billion in BetMakers shares.

The $4 billion offer usurps the previous $3.5 billion bids by British wagering giant Entain, owner of Tabcorp’s online rivals Ladbrokes and Neds, and private equity group Apollo.

In recent years, BetMakers has elevated itself into a key player in the wagering landscape both in Australia and abroad, providing technology to online bookmakers and making significant advances in the United States.

“The potential acquisition of Tabcorp’s Wagering and Media business represents an exciting opportunity for BetMakers to deliver transformational growth and realise the value of these new assets in line with this strategy,” Betmakers CEO Todd Buckingham said.

“Building on BetMakers’ success to date, the Combined Entity would be a compelling investment proposition as one of the most broadly deployed global racing networks in the market.

“We are uniquely placed to pursue commercial opportunities globally, and in particular, in the United States.

“TAB and Sky Racing have a strong wagering brand, and we believe that BetMakers is uniquely positioned for an opportunity to grow and further enhance the business both in Australia and globally.”

Back in February, Australian wagering trailblazer Matt Tripp made a $25 million investment into BetMakers, signalling that a colossal move on the wagering landscape was at hand.

Tripp, acting as a strategic advisor for BetMakers, said that the offer tabled provided “significant potential” for shareholders.

“I am excited by the potential opportunity to reinvigorate the Tabcorp Wagering and Media business,” Tripp said.

“There is significant potential for the business to grow in partnership with BetMakers and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB.

“Aside from the value that this offer is anticipated to unlock for shareholders in both companies, this is an incredibly exciting opportunity for the Tabcorp Wagering and Media business to maximise its commercial potential on a global scale.”

While acknowledging the offer, Tabcorp advised it is yet to form a view on BetMakers’ proposal.