Tech firm BetMakers in trading halt as Tabcorp reports swirl

Australian wagering technology company BetMakers has entered a trading halt amid reports it may be about to be acquired by Tabcorp.

In what would be the first major acquisition move by Tabcorp since Gillon McLachlan took over as CEO in August 2024, the Australian Financial Review has reported that high-level discussions have been underway between McLachlan and BetMakers chairman Matt Davey.

The rumours then went into overdrive when BetMakers paused trading at midday on Wednesday. It then released a statement to the ASX after the close, pending an announcement.

It will remain in a trading halt until Friday, February 13, or until the announcement has been made.

Betmakers shares rose from 20 cents to 23 cents on Wednesday, pushing its market capitalisation above $250 million. Its shares have risen 43 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.

It had recently signed supplier deals with Stake and Crownbet, extended its deal with Penn Entertainment and completed the acquisition of Las Vegas Dissemination Company.

Among its offerings is the global tote solution, an advanced pari-mutuel wagering technology and services.

Tabcorp, which holds a stake in social betting company Dabble, has not been active in the acquisition space since its management change, although it had been linked to a potential move on Australian rival Entain.

Since McLachlan took over, Tabcorp’s share price has more than doubled, and now sits at 90 cents with a market cap of over $2 billion. It has pivoted back to retail and is driving the establishment of a national tote.  

A Betmakers purchase would be an interesting play for Tabcorp, given Betmakers’ strength is in its business-to-business operations.

BetMakers had made an ambitious $4 billion bid for Tabcorp’s media and wagering business in 2021, but dropped it six weeks later.