Betmakers Technology Group Ltd (ASX: BET) has confirmed that it was approached by Tabcorp Holdings Ltd (ASX: TAH) about a potential takeover of the company.
Betmakers asked for its shares to be placed in a trading halt on Wednesday after the Australian Financial Review published an article suggesting that Tabcorp was considering a takeover bid for its smaller counterpart.
Betmakers said in a short statement to the ASX on Thursday:
BetMakers maintains an ongoing commercial relationship with Tabcorp, supplying wagering technology and content distribution services in support of Tabcorp's racing and media operations. BetMakers confirms that it was approached by Tabcorp and that preliminary and informal discussions have taken place regarding a potential change of control transaction. While those discussions were at an early stage and highlighted opportunities for BetMakers' wagering technology products, no formal offer was received and discussions have ceased.
Tabcorp has not made a statement about the discussions.
Betmakers shares fell 15.2% to 19.5 cents after returning to trade on Thursday, while Tabcorp shares were 2.6% lower at 86.7 cents.
Tabcorp is much larger than Betmakers, with a value of $2.03 billion as compared to Betmakers' value of $258 million.
Image source: Getty Images
Business travelling well
Betmakers recently reported positive numbers for the December quarter, with revenue of $22.9 million, up 14.1% on the previous corresponding period, and EBITDA of $2.7 million, a $3 million turnaround.
Betmakers Executive Chair Matt Davey said at the time:
The Q2 FY26 results underscore the consistent performance of the business in the last 12 months, delivering a $3.0 million increase in Adjusted EBITDA compared to the prior corresponding period. This structural improvement, which saw our gross margin expand to 66.4%, is a direct result of our disciplined focus on high-margin, technology-led revenue. Having successfully navigated the transition phase, the Company is now operating from a more resilient financial footing. Our focus is on accelerating growth by leveraging our core technology platform to secure new market leading customers globally.
The company said a key highlight during the quarter was the agreement it signed with global betting brand Stake in December.
The company said regarding the deal:
Under this multi-year contract, BetMakers will provide Stake with its market leading technology solutions, facilitating Stake's horse racing offering across various international markets. This partnership underscores the strength and scalability of our proprietary technology, as we support a high-volume, global operator in enhancing its product. The deal not only reinforces BetMakers' position as a preferred racing partner for global operators but also aligns with our strategic focus on high-margin, technology-driven revenue streams that leverage our extensive global racing rights and technology capabilities.
