🔒 🔒 Smaller bookies set for shake-up after Tabcorp move on BetMakers

Tabcorp’s pending takeover of BetMakers could precipitate a major shake-up of the smaller end of the bookmaking industry, with concerns expressed by some of the 50 bookies which utilise solutions and platforms operated by the wagering technology company.

The Straight spoke to several BetMakers-powered bookmakers after it was confirmed on Monday that Tabcorp would seek to buy out the company in a deal worth $267 million.

The universal concern for those bookmakers is whether, under a new model, Tabcorp, a key rival for customers, would have access to their client lists, which are currently hosted on BetMakers.

One BetMakers-powered bookmaker said Tabcorp’s increased role as a wagering technology supplier after the acquisition was a question of “church and state” separation, which would give the wagering giant considerable power.

Another bookmaker, who wished to remain anonymous so as to protect his position with regard to future negotiations with BetMakers and Tabcorp, said the pending deal raised a host of questions.

“Everyone’s going to be nervous because BetMakers know our customers. Your customers are your business, and when people leave, or incentives change, that’s always a concern,” he said.

“It’ll make it hard on the small partners and the small bookies. It gives you fewer options and puts more power in the hands of a much bigger player.”

The bookmaker said while the BetMakers technology had allowed the number of smaller operators to grow significantly through white-labelled platforms, trading services and data provision, it was the database of customers that was the greatest asset.

“The major concern is customer ownership and visibility. For small bookmakers, customer relationships are the business, and any change that gives a larger competitor access to that information creates significant anxiety,” he said.

The broader question is whether it is in Tabcorp’s best interests to pursue that aspect of the BetMakers’ business in Australia, long-term. It was revealed this week that around 73 per cent of its revenue is derived from overseas.  

In an investors’ call on Monday, Tabcorp said it would be business as usual for BetMakers post the acquisition, which is expected to be completed in early 2027, but those assurances won’t stop the bookmakers assessing their options.  

“We’ve got to go out and see how we can protect our business,” the bookmaker said.

Even if there were assurances that client lists and the like would be protected under a new deal, an uncertain technology roadmap under new ownership may prompt some BetMakers bookies to look elsewhere.

There are alternatives to BetMakers in the market, including Punterstech, Wagering 360 and BetCloud, which could be set to benefit from any exodus.

The anonymous BetMakers’ client said that he held concerns about whether BetMakers’ current platform could be described as market-leading, and where it might head under Tabcorp ownership.

“BetMakers were ahead of the game, but now they’re behind the pack. Technology-wise, a lot of operators feel others have caught up or gone past them,” he said.

“The other options are basically to build your own platform or go to competitors. None of them are true tech companies. Their roadmaps move, their promises move, and their delivery dates move.”

Other questions raised by those spoken to The Straight centred on BetMakers’ role in providing wagering solutions for overseas-based operators.

Such operators are not licensed to offer services to Australian customers, but there is increasing concern from within the industry that a substantial amount of betting is moving into offshore markets, which aren’t subject to the same regulatory and tax costs as Australian-licensed operators.

BetMakers is also a major equity holder in digital platform Betsy.