In a strategic maneuver, BetMakers Technology Group Ltd has positioned itself to enhance its provisions within the global racing industry through acquiring assets from Racelab Global. A total consideration of AU$1.5m (£779,316/€910,620/US$977,501) has been agreed upon, which is inclusive of a clawback clause worth up to $500,000. The clause is conditional upon the successful transfer of key customers within a 30-day period subsequent to the closing of the deal.
BetMakers has identified this acquisition as “highly strategic,” primarily because it supplements its existing services with advanced technology related to race form, preview, and statistics, in addition to incorporating proprietary fixed odds pricing technology along with its associated algorithms. Among the valuable Racelab assets being incorporated are ProForm informatics, and enhanced content, as well as Odds Engine pricing and trading technology.
This acquisition is also set to widen BetMakers’ reach into other racing sectors like harness and greyhound forms and previews. Furthermore, it establishes an ongoing partnership between BetMakers and Sports Information Services Limited, a global racing rights holder. The collaborative endeavor is expected to generate novel products and services catering to an international clientele.
BetMakers’ CEO, Jake Henson, expressed his enthusiasm about the deal, highlighting the potential of the Racelab assets. “We have acquired market-leading technology that further broadens the capabilities of BetMakers’ racing ecosystem for wagering operators and rights holders alike, across the globe,” Henson stated. He underscored the strategic vision the acquisition brings to the ProForm and Odds Engine operations and the company’s confidence in delivering significant value from this transaction that will contribute to both revenue and earnings growth starting from FY25.
Concurrently, BetMakers announced the termination of its platform and services agreement with Betr, due to Betr’s acquisition by BlueBet Holdings. As part of the merger, Betr customers will transition away from the BetMakers platform to join BlueBet, negating the necessity of BetMakers’ partnership.
Under the termination terms, Betr will maintain a scaled-down service arrangement with BetMakers until the migration is finalized, which is expected by the end of August. Failure to complete the migration by 1 October will result in Betr compensating BetMakers at a rate of $500,000 monthly until the process concludes. Moreover, Betr has agreed to pay several fees, including $3.75m paid in March, $2.25m to be settled by 14 June, followed by a payment of $1.5m to $2.0m by 13 September, contingent upon the timing of the customer migration’s completion.
This termination also liberates BetMakers to collaborate with more operators within the Australia and New Zealand markets, an opportunity that was previously limited due to Betr’s exclusive rights over certain premium services. “BetMakers is pleased with the agreed outcome between the parties,” Henson remarked, stressing both the financial recovery from the termination and the strategic growth the company foresees through freeing up resources.
Finally, BetMakers has confirmed the payment of the remaining special deferred amount due as part of its acquisition of Punting Form, which it purchased for AU$20.0m in November 2022. The Punting Form sellers recently delivered North American race and sectional data, satisfying the conditions of a “special event” in the acquisition deal and triggering an additional payment of $3.0m. An initial $500,000 installment was made in March, followed by an additional $2.5m, comprising $1.0m in cash and $1.5m worth of shares.
The integration of Racelab’s assets into BetMakers’ portfolio represents a significant step forward for the company, poised to further revolutionize betting experiences with its technologically advanced services on a global scale.
