This was published 4 months ago
‘The worst kept secret in wagering history’ is out
The merger between ASX-listed BlueBet and Matthew Tripp’s Betr has finally been completed after months of negotiations between the two wagering companies.
BlueBet, helmed by Michael Sullivan, confirmed the acquisition on the ASX on Thursday. The merger will triple BlueBet’s number of customers aged under 35 and provide Betr with better technology. The two parties are yet to determine what name they’ll trade under when launching as one ahead of the spring racing carnival.
Betr chairman Matthew Tripp also chairs the Melbourne Storm. Credit: Oscar Colman
The two companies expect to be profitable in the 2025 financial year. The Tripp Group – Tripp’s consortium that currently owns Betr – will receive a majority of shares in BlueBet.
Speculation about a merger between the two has swirled for the better part of a year and intensified over the past month, as evidenced by BlueBet’s share price, which soared 20 per cent to 30¢ on Wednesday before it entered a trading halt.
Sullivan, who sold SportingBet to William Hill for $660 million in 2013, said the deal would allow the company to compete with its larger competitors including Sportsbet, Entain and Pointsbet.
Tripp is often credited for founding the online wagering market in Australia, having bought Sportsbet for $250,000 in 2005 and building it into the country’s biggest bookmaker before selling it to Irish giant Flutter (formerly Paddy Power) for $388 million in 2011.
“We are excited by the growth opportunities and synergies that will be unlocked through the proposed merger of our two businesses,” Sullivan said.
“Matt Tripp and Michael Sullivan are the original pioneers of online wagering in this country, and this combination brings together a great mix of experience and innovation,” Betr chief executive Andrew Menz said.
“BlueBet has invested heavily in its technology, and I’m excited about what this transaction means for customers of both companies.”
BlueBet’s share price has fallen by more than 80 percent since it launched on the ASX in 2021. The company has been hit hard by the industry’s maturing, increased taxes, and an increased cost base.
Ord Minnett and Gilbert + Tobin advised BlueBet, while Betr used Arnold Bloch Leibler and Barrenjoey.
The two entities are expected to be integrated into the BlueBet platform ahead of the spring racing carnival this year.Credit: Getty
Sullivan will remain executive chairman until January 2025, with Tripp to assume the role of chairman from that date. Menz will become chief executive of the new business, while BlueBet chief Bill Richmond will become chief operating officer.
BlueBet also announced a $20 million equity raising at 21¢ a share to fund the transaction costs and growth of the merged business.
Taylor Collison’s Andrew Orbach said the merger was “the worst kept secret in wagering history” following the news.
He pointed out that BlueBet’s wagering app download market share has been hovering at about 3 per cent for the past 12 months, while Betr’s peaked at about 50 per cent following its infamous 100-to-1 inducement odds offer, before settling at about 1 per cent to 2 per cent.
Orbach estimates the combined entity is responsible for about 3.5 per cent of wagering turnover and expects the new company to sell off BlueBet’s US business.
“Focus will likely be on Australian operations. Strategic review to be conducted on US operations. It is TC’s view that this asset will likely be up for sale given slow progress it has made and the way US market is playing out,” he said.
“Buckle up. Matt Tripp getting the old band back together one more time with right-hand man Andrew Menz on lead vocals. First time market has had a chance to be a shareholder of Matt Tripp’s after being a private operator for 20 years.”
Betr has attempted to enter into deals with a string of other companies over the past year to improve its technology, including PointsBet.
The company launched in 2022 as a consortium between News Corp, LA-based Tekkorp and founder Tripp’s investor vehicle TGW, which planned to leverage News Corp’s swath of media assets. It’s believed Tekkorp was not allowed to remain in the consortium after being unable to fund its launch obligations, while News Corp– which injected $75 million into Betr – formally severed ties with the business last year, leaving Tripp and his investors as sole owners.
To draw customers in, Betr launched with the 100-to-1 odds offer on a string of local and international sporting events including the 2022 Melbourne Cup, the football World Cup and the AFL grand final. The inducement ended with the business paying $40 million to customers who backed the Penrith Panthers to take home the 2023 NRL grand final.
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