Tabcorp to Acquire BetMakers in AU$267 Million Deal
Tabcorp to Acquire BetMakers in AU$267 Million Deal
Tabcorp Holdings has entered into a binding agreement to acquire BetMakers Technology Group for approximately AU$267 million (US$188.6 million). The deal comes months after initial takeover discussions between the two companies collapsed.
The acquisition, announced via an Australian Securities Exchange (ASX) filing, aims to integrate BetMakers’ wagering technology platforms and B2B services into Tabcorp’s wagering and media operations.
Deal Terms and Structure
Under a Scheme Implementation Deed, Tabcorp has offered to purchase all outstanding BetMakers shares at AU$0.24 per share. The price reflects an enterprise value of approximately AU$267 million and an equity value of roughly AU$283 million on a fully diluted basis.
Tabcorp will fund the acquisition primarily through its cash reserves and undrawn debt facilities. The offer price represents a premium to BetMakers’ recent market trading. BetMakers reported an unaudited EBITDA of AU$14 million for the 12 months ending 30 June 2026.
Strategic Rationale: ‘Accelerate Our Strategy’
Tabcorp’s leadership described the acquisition as a means to accelerate the modernization of its technology platform.
“The acquisition of BetMakers will accelerate our strategy across multiple areas. BetMakers has undergone a significant transformation over the past two years and built impressive wagering technology and a talented team. Accessing those advantages will uplift our own tech capability and fast track our product ambitions,” said Gillon McLachlan, Tabcorp’s chief executive officer.
“Having spent time with the Tabcorp team, it is clear we share a common purpose: to build a market-leading global wagering and media business,” added Jake Henson, CEO of BetMakers. “Bringing together Tabcorp’s rights, content and relationships with BetMakers’ platforms, data and B2B wagering services will create a more complete and compelling global offering for our customers.”
Financial Implications
Tabcorp expects to realize cost synergies of up to AU$30 million by the end of its second year of ownership. These savings are anticipated from:
- Consolidating data centres, corporate applications and technology contracts
- Replacing legacy platforms with BetMakers’ product suite
- Achieving efficiencies within corporate and support functions
The transaction is forecast to be earnings-per-share (EPS) accretive from the second year post-completion, reaching double-digit EPS accretion by the third year.
BetMakers shareholders have the option to elect to receive up to 25% of their consideration in new Tabcorp shares.
Deal Conditions and Timeline
The proposed acquisition remains subject to several customary conditions, including:
- Approval from BetMakers’ shareholders and the courts
- Clearance from the Australian Competition and Consumer Commission (ACCC)
- Regulatory consents from gaming and racing authorities in jurisdictions where BetMakers operates
The parties aim to complete the transaction in the third quarter of Tabcorp’s 2027 financial year, pending final regulatory and shareholder approvals. A scheme booklet and independent expert’s report are scheduled for distribution to BetMakers shareholders in late 2026.
Second Time’s a Charm
Tabcorp’s takeover of BetMakers was first floated in December 2025. Tabcorp approached BetMakers following a positive 2025 financial year. After reporting a rise in revenue and a return to net profit, McLachlan described the company as “fitter” and “improved.” However, talks did not proceed beyond an “informal” discussion, according to both companies in February this year.
Additionally, Tabcorp incurred penalties totaling more than AU$2.7 million from the Australian Communications and Media Authority (ACMA) earlier this year. ACMA clarified that Tabcorp had violated telemarketing and spam regulations over a 16-month period.
Last year, BetMakers agreed to acquire Las Vegas Dissemination Company (LVDC). BetMakers said LVDC is expected to generate approximately AU$4.5 million in revenue in the first year post-acquisition.
Kathryn Evans covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.