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Key points
- The BetMakers share price is currently trading 3.51% lower at 63.2 cents
- The dip follows news the company's exclusive agreement to provide fixed odds betting for thoroughbred racing in New Jersey has been extended
- New terms have also been added to the deal, allowing the company to sub-licence the offering
The Betmakers Technology Group Ltd (ASX: BET) share price is in the red this morning despite the company announcing its exclusive fixed odds betting agreement in New Jersey has been extended.
The extension means the company will be the state's only provider of fixed odds betting on thoroughbred racing for 15 years. The extended agreement also includes new rights, allowing the company to sub-licence the offering.
At the time of writing, the BetMakers share price is 63.2 cents, 3.51% lower than its previous close.
Let's take a closer look at the news moving the betting technology provider's stock this morning.
BetMakers share price slumps despite extended agreement
The BetMakers share price is sliding despite the company announcing the operator of Monmouth Park racetrack and the New Jersey Thoroughbred Horseman Association have extended the company's fixed odds betting licence to 15 years. Previously, the deal was for 10 years.
The extended agreement also includes updated terms. It gives BetMakers the right to sub-licence New Jersey thoroughbred fixed odds wagering to sportsbook operators, casinos, and online wagering operators.
The company expects to be releasing news of sub-licence deals to the market over the coming months.
It also announced fixed odds betting on thoroughbred racing is set to be rolled out at Monmouth Park in March.
New Jersey legalised fixed odd wagering on horse races in August 2021. Betmakers – through its subsidiary Betmakers DNA, trading as the Global Racing Network – will exclusively provide the state's betting service.
What did management say?
BetMakers North America CEO Christian Stuart commented on the extended agreement. Stuart said there's been an "overwhelmingly positive response" to fixed odds betting in the US:
Fixed odds – and the certainty of price setting for the person placing the bet – has attracted a new audience of people betting on sport, and I expect this will be the case for horse racing…
Racing as a product for sportsbook operators to offer their customers is placed to be a very important wagering vertical because of the frequency of events and the margins that can be delivered.
How has BetMakers' stock performed lately?
2022 hasn't been kind to the BetMakers share price.
The company's stock has tumbled 21% since the final close of 2021. It's also 11% lower than it was this time last year.
