Tabcorp to Acquire BetMakers for AU$267 Million

Tabcorp Holdings has entered into a binding agreement to acquire BetMakers Technology Group for approximately AU$267 million (US$188.6 million). This announcement comes months after previous takeover talks faltered. The acquisition, disclosed via an Australian Securities Exchange filing, aims to incorporate BetMakers’ wagering technology and B2B services into Tabcorp’s operations. Tabcorp will purchase all outstanding BetMakers shares at AU$0.24 per share, reflecting an enterprise value around AU$267 million and an equity value of approximately AU$283 million on a fully diluted basis. The acquisition will primarily use Tabcorp's cash reserves and undrawn debt facilities. BetMakers’ recent market valuation indicated that the offer price is a premium.

Strategic Acquisition to Enhance Technology

The acquisition is set to play a pivotal role in modernizing Tabcorp's technology platform. Gillon McLachlan, CEO of Tabcorp, stated, "The acquisition of BetMakers will accelerate our strategy across multiple areas. BetMakers has transformed significantly over the past two years, building impressive wagering technology and a talented team.” Jake Henson, CEO of BetMakers, added that merging Tabcorp's rights with BetMakers’ platforms will create a comprehensive global offering.

Financial Impact and Expected Synergies

Tabcorp anticipates achieving cost synergies up to AU$30 million by the end of two years. Savings are expected through data center consolidation, replacing legacy platforms, and corporate function efficiencies. The deal is forecasted to be EPS accretive from the second year, reaching double-digit EPS accretion by the third year. BetMakers shareholders can opt to receive up to 25% of their compensation in new Tabcorp shares.

Regulatory and Shareholder Approvals

The acquisition requires several approvals, including from BetMakers’ shareholders and the Australian Competition and Consumer Commission. Regulatory consents from gaming and racing authorities where BetMakers operates are also pending. The transaction aims to complete by the third quarter of Tabcorp’s 2027 financial year, contingent on receiving final approvals. A scheme booklet and expert's report will be distributed to BetMakers shareholders in late 2026.

Background of the Deal

Initial acquisition talks began in December 2025, following a robust financial year for Tabcorp. The company reported increased revenue and a return to net profit. However, discussions did not go beyond informal stages. Additionally, Tabcorp faced penalties over AU$2.7 million from the Australian Communications and Media Authority earlier in the year for telemarketing and spam violations. Meanwhile, BetMakers acquired Las Vegas Dissemination Company, expected to generate about US$4.5 million in revenue in its first year post-acquisition.

Future Projections and Strategic Alignment

This acquisition positions Tabcorp for long-term growth by leveraging BetMakers' innovative technology and data capabilities. The integration will transform their global wagering and media business, offering an enhanced portfolio to customers.