In the dynamic realm of wagering, certain individuals carve a niche for themselves, becoming beacons of industry ingenuity and leadership. This month, we turn the lights towards three trailblazers: Tim Heath, Peter Jackson, and David Walsh. Each has left an indelible mark on the wagering landscape, from pioneering crypto betting initiatives to heading the world’s largest wagering corporation, and even mastering the art of professional gambling at an unparalleled scale.
The past ten years have seen a meteoric rise in online wagering, largely fueled by technologies that cater to the ever-growing mobile sector. It is in this surge that visionaries like Tim Heath and Peter Jackson have solidified their positions as luminaries of digital refinement.
Hailing from Australian roots, Tim Heath is synonymous with entrepreneurial acumen in the world of wagering. A venture capitalist with an illustrious path that started immediately post-university, he founded heathmont.net—a venture combining his prowess in software development and e-commerce.
In 2013, Heath unveiled Coingaming Group, marking his foray into the crypto wagering space. This bold endeavor evolved into what’s now known as Yolo Group, boasting flagship B2C enterprises Sportsbet.io and Bitcasino.io—the subjects of our previous editions focusing on the blistering pace of crypto wagering’s growth.
The Yolo Group, employing over 600 staff members, is a conglomerate that spans wagering operations and venture investments. Early to embrace game-changing innovations, such as live streaming across all major sports events and the cashout feature, they set new industry benchmarks for customer-focused advancements. Known for turning around withdrawals in lightning-fast times, as brisk as 1.5 minutes, these B2C brands are among the leaders in service speed.
Tim Heath’s undivided attention on user experience has rocketed Sportsbet.io to the summit of global crypto wagering, boasting monthly turnovers exceeding a staggering US$2.7bn. To offer perspective, Australia’s principal operator averages US$1.2bn per month, securing a market dominance of about 50%.
As we gaze into what the future holds for Tim Heath, he’s keen on restructuring the international payments sphere, with a critical eye on the prevailing SWIFT system’s inefficiencies, ranging from tardiness to privacy concerns.
Peter Jackson, ensconced in his role since January 2018, has propelled Flutter Entertainment to unrivaled heights, doubling its valuation and earning it the title of the world’s most valuable publicly listed wagering enterprise. Trailing closely is the privately owned titan, Bet365.
Flutter Entertainment distinguishes itself as the sole publicly listed B2C wagering operator in our extensive portfolio at Waterhouse VC.
Jackson, an alumnus of Cambridge with a degree in manufacturing engineering, refined his expertise during a three-year tenure at McKinsey. His trajectory included various positions at Halifax Bank of Scotland prior to its assimilation by Lloyds in 2009.
By 34, he clinched the CEO role at Travelex, steering the foreign exchange firm to impressive revenue growth, culminating in its £1bn sale. Jackson, a board member of Betfair since 2013, ascended to the helm of Flutter five years later.
Acute awareness of the vital roles of scale and efficiency in a landscape burdened by heavy regulation and taxes has been central to Jackson’s strategy. His consultative background and financial experience have seen Flutter’s operations dominate through organic growth and astute mergers and acquisitions, such as those involving MaxBet and Junglee Games.
The broad expertise within the Flutter Group bestows each division a ‘flywheel’ effect, benefiting from shared industry knowledge, tech advances, consumer insights, and data analytics. This powerful impetus has seen FanDuel, Flutter’s U.S. division, achieve revenues soaring from US$300m in 2018 to an astonishing US$3.3bn in 2022.
Jackson played a pivotal role in Flutter’s recent dual-listing on the NYSE, bolstering its access to U.S. capital markets and aligning stock incentives with its U.S.-based workforce. Given the traditionally higher valuations of U.S. stocks, Flutter’s shareholders are set to benefit from potentially increased company value, facilitating the pursuit of more capital at favorable rates.
Lastly, we look at David Walsh, a figure who’s rewritten the rules of professional gambling. Partnered with Zeljko Ranogajec in a syndicate, Walsh engages in betting across horse racing, sports, lotto, and the casino and financial realms, with an astounding annual turnover potentially exceeding $3bn.
Walsh’s gambling success is complemented by his cultural contributions, notably the $75m Museum of Old and New Art (MONA), an act of philanthropy recognized with an Officer of the Order of Australia accolade.
Proficient bettors like Walsh are equipped with a unique blend of intelligence and expertise, possessing a deep understanding of betting dynamics across various platforms. They command an operation underpinned by advanced algorithms and a team skilled in mathematics, computer science, and statistics, systematically evaluating myriad factors that determine the likely outcome of an event.
As we’ve illuminated previously, racing syndicates gain an edge through rebates on wagers, augmenting their inherent advantage. To be eligible, they place large sums of money, creating a rebate-fueled edge that presents a significant barrier for newer syndicates striving to carve out their mark in racing.
At Waterhouse VC, we focus on providing investment opportunities for wholesale investors in global wagering and gaming businesses, both publicly listed and private. Since our inception in August 2019, Waterhouse VC has attained a gross total return of 2,858% as of 29 February 2024, assuming the reinvestment of all dividends.
