Betr a late scratching from WA TAB race leaving Tabcorp as favourite

Matthew Tripp’s betting group has withdrawn its bid for the West Australian wagering licence at the eleventh hour, potentially leaving the race open for ASX-listed Tabcorp.

Betr chairman Matt Tripp. Picture: Aaron Francis

Matthew Tripp’s wagering group Betr has withdrawn its bid for the West Australian wagering licence at the eleventh hour, after previously being set to be named this week as the preferred bidder.

Sources indicated Betr had a late dispute with the West Australian government regarding the use of its brand in the state, where the TAB brand is currently used by the state-owned business, and the legal and marketing implications of doing so without Tabcorp’s permission. Tabcorp owns and operates the TAB brand in the remainder of Australia.

Betr’s move on Monday afternoon paves the way for Tabcorp to potentially win the licence, though the government is also at risk of not having any successful bidder. Tabcorp chief executive Adam Rytenskild has repeatedly told investors that while his company could bid for retail licences, it would not overpay for them.

Entain, the owner of the Ladbrokes and Neds brands in Australia, was also a bidder for WA but sources indicated it was behind Betr and Tabcorp in the race for an asset mooted to be worth about $1bn to the government and racing industry in the state.

Betr is headed by Mr Tripp and chief executive Andrew Menz. It is backed by an ownership group including News Corp Australia – publisher of The Australian – and Las Vegas-based Tekkorp Capital, owned by Australian wagering entrepreneur Matt Davey. Betr’s technology is supplied by Betmakers Technology.

Tabcorp chief executive Adam Rytenskild. Picture: John Feder

Mr Tripp’s company has had a fast start since launching two weeks ago, having signed up about 200,000 customers and its app appearing at the top of the Australian app download charts.

Punters have been attracted to Betr’s 100/1 offer on horses in the Cox Plate and Melbourne Cup, although there has been some frustrations about the user experience given heavy betting.

Betr has also acquired Tamworth-based TexBet to further fuel its growth, though a successful bid for the WA licence would also have provided a big boost in its customer base.

Mr Tripp and Mr Menz had secured a debt financing deal to pay for the WA bid, including funding from the ASX-listed Washington H Soul Pattinson Group, before withdrawing its bid after conducting further due diligence.

The Australian’s DataRoom column reported on Monday that while Betr was the preferred bidder, Tabcorp was not out of the contest, with questions over how either of the parties would want to pay to strike a deal.

It is likely now that the WA government will approach Tabcorp to try to strike a deal, and could also enter talks with Entain.

However, both companies are understood to be reluctant to increase their bids given some competitive tension in the process is now removed without Betr.

The WA government has considered selling the business several times, withdrawing it from the market at the height of the Covid-19 pandemic in 2020.