Big News for sport fans
NEWS Corp is entering the sports betting market via a consortium, including wagering veteran Matt Tripp and Las Vegas digital sports-gambling firm Tekkorp.
The new wagering venture will apply for a sports bookmaker licence under which it will operate a new online wagering product for Australian and New Zealand punters to bet on racing and sports.
ASX-listed BetMakers will be the technology services provider for the venture, named NTD, which will launch in the second half of this year.
Tekkorp, headed by Matt Davey, is BetMakers’ biggest shareholder.
The news sent BetMakers shares soaring 19 per cent to 77c in afternoon trade on Thursday, compared with a 0.3 per cent gain across the broader share market.
The venture will be promoted across News Corp’s Australian assets, which include this masthead, as well as Foxtel and sports streaming service Kayo.
It comes as Mr Tripp – an Australian online betting pioneer and former boss of Sportsbet and later CrownBet and BestEasy – joined BetMakers last year to lead a $75m raising and advise on key deals in Australia and overseas.
Shaw and Partners senior investment manager James Nicolaou said Mr Tripp had “masterminded what looks to be a cracking deal”, regarding the News Corp wagering venture.
BetMakers chief executive Todd Buckingham said it was a “landmark agreement”.
BetMakers issued Mr Tripp 35 million Class A performance rights, which vest upon delivery of a strategic deal. He has agreed to increase the escrow arrangement to 100 per cent on the Class A performance rights, and any shares issued on conversion, for a period of three years in return for consideration of $15m.
“I am delighted to be a part of delivering a material agreement for the company, a company that I have been significantly involved with as a strategic advisor and shareholder,” Mr Tripp said.
“I have seen first-hand the technology and solutions BetMakers has developed and implemented, with the company continuing to set new global benchmarks in delivery for wagering operators and racing bodies around the world.
“BetMakers provides one of the best end-to-end packages of technology and trading services in the global B2B wagering market, which is why I am happy to invest in a new wagering venture that will rely upon it.”
Mr Davey, who will step down from the BetMakers board, said the joint venture was a “significant investment by Tekkorp Capital”.
“As the largest shareholder of the company (BetMakers), I have been suitably impressed during my time on the board, not only by the company’s corporate structure, governance and strategy but in particular the ability of management to execute on the enormous opportunity in front of it,” he said.
“I am very excited by its future and intend to remain a supportive long-term shareholder. The recent appointments of two new highly respected independent nonexecutive directors, Anna Massion, who I have known through dealings in the US, and Rebekah Giles in Australia, adds great strength to the company’s foundation board members.”