Social betting a focus as MIXI aims to make PointsBet a market leader

MIXI has confirmed it wants PointsBet to become a market leader in social betting in Australia, as the relationship between the Australian bookmaker and the Japanese company, which now holds 66.4 per cent ownership, takes shape.

MIXI, which has a market capitalisation of 206 billion yen, or just over AU$2 billion, is a conglomerate of sports, lifestyle, digital entertainment and investment businesses.

It released its quarterly results in Japan this week, which showed a 6.8 per cent decline in revenue to 36.1 billion yen and a 20.1 per cent drop in EBITDA, partially attributable to a one-time cost incurred in connection with the majority acquisition of PointsBet.

President and chief executive Koki Kimura said the investment in PointsBet, which also has a strong presence in Canada, was already yielding strategic value for MIXI.

“The company (PointsBet) has continued to grow both net sales and profit year after year and recently achieved consolidated profitability in the Australian business, which had positive EBITDA for six consecutive pre-periods,” Kimura told investors.

“Racing has matured and is stable, while sports betting continues to drive overall market growth. Leveraging growth in sports betting we aim to further expand market share. 

“Meanwhile, the Canadian market is expanding rapidly as legal frameworks are established across various provinces.”

MIXI has established its position in the wagering market primarily through its TIPSTAR brand, a social betting app it acquired in 2020. “Tickets” sold through TIPSTAR jumped 12.2 per cent in Japan year on year in the last quarter.

In its pitch to acquire PointsBet, the opportunities of bringing this expertise into the Australian and Canadian markets were to the fore, and Kimura said MIXI intends to push through with this strategy.

“PointsBet has strong brand power in the Australian market and is an excellent company that continues to refine user experience through its unique technological capabilities,” he said.

“Meanwhile, MIXI has expertise in social betting operations and expanding services through viral promotion. By applying this knowledge to PointsBet and combining the strengths of both companies we are confident that we can further grow the business.

“We aim to establish social betting in Japan, Australia and Canada and become a market leader.”

Social betting already has a presence in Australia, chiefly through platforms such as Dabble, although MIXI is expected to apply a different lens on this.

It describes TIPSTAR as a social networking service where you can share tips, place bets and watch live streams. It increased its monthly active users by 70 per cent compared to the same time last year, with net sales up 68.5 per cent.

There are currently only four sports you can legally bet on in Japan, horse racing, bicycle racing, powerboat racing and motorbike racing.

PointsBet, which is more sports-betting focused than its other Australian rivals, will allow the scope of a TIPSTAR-like product to broaden to other sports in Australia and Canada.

“We aim to establish social betting in Japan, Australia and Canada and become a market leader” – MIXI president and chief executive Koki Kimura

Kimura said the relationship with PointsBet, which now features three MIXI representatives on its board, Sho Okuyama, Kanji Kobayashi, and Taishi Oba, was progressing well, despite MIXI not being able to achieve its initial aim of a total buyout, thanks largely to a rival bid from Betr, which now holds 27.7 per cent of PointsBet. 

“I believe the biggest factor behind the success of this M and A was, above all, a strong trust built between the two companies,” Kimura said.

“Throughout the deal process, the PointsBet board consistently supported MIXI stating that MIXI is the most trustworthy partner.

“Since the start of October, we have been working together under the slogan go together, moving forward as one team.

Meanwhile, MIXI subsidiary Chari Loto, which takes bets on cycling and auto racing, repaid 200 million yen of taxes (approximately AU$2 million), after a Tokyo Regional Taxation Bureau investigation accused it of concealing approximately 800 million yen in income.

This was due to inappropriate financial transactions involving two senior executives, who were sacked in 2024 after it was discovered they had received a total of over 1 billion yen in kickbacks from several of the company’s business partners.

Chari Loto stated to media outlet NHK that it had filed an amended tax return and paid taxes.

“We take this matter very seriously. We deeply apologise for causing great concern and inconvenience to all those involved. We are already implementing measures to prevent recurrence, and will continue to work to strengthen governance across the entire group,” it said.