‘Discussions have ceased’ – BetMakers scotches Tabcorp takeover rumours

Wagering technology company BetMakers has been forced to issue a statement denying it is in ongoing discussions with Tabcorp over a possible takeover.

A report in the Australian Financial Review on Wednesday suggested there had been high-level discussions between Tabcorp chief executive Gillon McLachlan and BetMakers chairman Matt Davey.

A subsequent trading halt by BetMakers on Wednesday intensified speculation, but the publicly listed company has since issued a statement to the ASX clarifying its position.

“BetMakers maintains an ongoing commercial relationship with Tabcorp, supplying wagering technology and content distribution services in support of Tabcorp’s racing and media operations,” it read.

“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.”

BetMakers was also queried by the ASX about information regarding recent trading in its securities ahead of the article appearing in the AFR on Wednesday.

In response, it put out the statement regarding Tabcorp and insists it has complied with all relevant listing rules.

“BET will keep the market updated as required under its continuous disclosure obligations,” it said.

Betmakers shares had risen from 20 cents to 23 cents on Wednesday, increasing its market capitalisation beyond $250 million, before the trading halt was put in place, pending an announcement.

Subsequent to shares re-opening on Thursday, they dropped back to 20 cents.

Nevertheless, BetMakers shares have risen 41 per cent in six months. It reported in its recent quarterly update that it had recorded a $2.7 million positive EBITDA result in Q2, with revenue of $22.9 million.

That came off a series of key contract for services, including deals with Stake and a newly rebadged Crownbet, and the acquisition of a data company in Las Vegas.

The discussions with Tabcorp, albeit now aborted, indicate a growing appetite for acquisitions for the wagering giant, which has been in a rebuild mode since McLachlan took charge in August 2024.

BetMakers made an audacious $4 billion bid for Tabcorp’s wagering and media businesses in 2021. It has since became focused on building its own value through its B2B approach as a supplier of technology and solutions to the global wagering industry.