Shares in Betmakers Technology Group Ltd (ASX: BET) were placed in a trading halt by the company before the market open today pending an announcement.
The move follows media reports that News Corporation (ASX: NWS) has joined a consortium that intends to launch a new online sports betting company in Australia.
According to the Wall Street Journal, owned by News Corp, unnamed sources familiar with the matter say the consortium intends to use Betmakers technology to power the new business.
Before the news broke, the Betmakers share price rose by almost 5% yesterday to finish the day at 65 cents. Betmakers will remain in a trading halt until either the announcement is made or Friday's market open.
Just in time for Spring carnival racing
The report said a Las Vegas digital sports gambling investment company Tekkorp Digital (NASDAQ: TEKKW) and Australian industry executive Matthew Tripp are working with News Corp to establish the new business. It has a working name of BetR.
The consortium is apparently preparing to announce the new company this week. They hope to launch the product in time for the Australian Spring horse racing season, which starts in late August.
Betmakers share price summary
As my Fool colleague James reported yesterday, Betmakers is currently among the top 10 most shorted shares on the ASX. Investors appear to be concerned over its valuation and cash burn.
The Betmakers share price is down 22% year to date and 48% over the past 12 months.
