The anticipated merger between BlueBet and betr has been completed, with Andrew Menz to lead the new combined company as chief executive, and former Bluebet boss Bill Richmond to fill the role as chief operating officer.
The acquisition of the betr’s wagering business, NTD Pty Ltd, was completed on Monday, with the company issuing just over 265 million shares to betr’s shareholders, or approximately 47.2 per cent of BlueBet’s share capital.
Full integration of the two businesses is expected before the spring racing carnival. An update on what this will look like is expected in August.
What we do know is that the company will be led by Menz as CEO and Richmond as COO, with Darren Holley as chief financial officer.
The board will feature Michael Sullivan as executive chair until January 2025 when Matt Tripp will take over that role, with Sullivan stepping back to a non-executive director role.
Tim Worner, David Fleming and Richmond are no longer company directors.
“The completion of BlueBet's transformational merger with betr marks a significant moment for the company and our shareholders,” Sullivan said.
“With our businesses now combined, we are highly focused on becoming a major player in the Australian wagering market, leveraging our market-leading technology and experienced and talented team.
"Integration between the two businesses is our primary focus, with the team working hard to rapidly deliver on the growth opportunities and synergies unlocked by the merger. I look forward to updating shareholders on our progress at our full-year results in August."
Account holders were made aware of the merger on Monday.
"The merger will see an exciting range of enhancements to your betting experience in the near future. But for now, nothing is going to change," betr account holders were told.
"Everything will remain as is - this includes your account balance, bonus cash, pending bets etc.
"However, both businesses will now operate under the BlueBet Pty Ltd online wagering licence issued by the Northern Territory Racing Commission. Whilst our terms and conditions have been updated to reflect the change in licensee, our betting rules will remain the same."
Meanwhile, BlueBet has taken a step backwards in its push into the ultra-competitive United States wagering market, terminating its market access agreement for the state of Indiana.
The American market has boomed off the back of widespread legalisation of sports betting, but it is fragmented state by state, with 38 separate state jurisdictions at last count.
That has made it hard for all but the biggest operators to make their mark on the American scene, and the ASX-listed Pointsbet sold off and exited from the American market late last year.
BlueBet, which is also listed on the ASX, has previously put its operations in the United States under strategic review. It currently has licences in Indiana, Iowa, Colorado and Louisiana.
Bren O’Brien
It also has business-to-business partnerships in Ohio and wants to grow that aspect of its operations.
“As previously announced, BlueBet has commenced a strategic review of its US operations. While the review remains ongoing, in the immediate term the Company has decided to focus on its three existing US B2C markets of lowa, Colorado, and Louisiana, while continuing to roll out its B2B Sportsbook-as-a-Solution offer,” the ASX statement said.
“The Company expects that demonstrating the strength of its B2B offer will unlock further B2B partnership opportunities, leading to a reduction in the net cash used in scaling the US business.”
“Consequently, BlueBet and Horseshow Hammond, LLL, have agreed to mutually terminate the market access agreement in Indiana.”
The statement said the decision was focused on maximising value for shareholders.
“The Company believes focusing its efforts and capital on its outperforming Australian business, while continuing to scale in the US with its ‘Capital Lite’ market entry strategy, will deliver the best returns on capital.”
