Former Tabcorp executive Frank Makryllos snaps up eBet

Former Tabcorp executive Frank Makryllos will buy its mobile gaming business, following the parent group’s strategic review.

Former Tabcorp executive Frank Makryllos will buy its mobile gaming business eBet for $62m, ending negotiations first reported by The Australian’s Dataroom column in August.

Tabcorp announced eBet was up for sale following a strategic review of its Gaming Services division in August when it reported its results.

eBet’s operations comprise technology solutions, products and systems for gaming venues in Victoria and NSW such as loyalty platforms and reporting tools.

In the 2022 financial year, eBet generated earnings before interest, taxes, depreciation and amortisation of $4.4m and an EBIT loss of $2m.

The sale is targeted for completion by the end of the first half of the current financial year, subject to necessary probity approvals being obtained and no material adverse change occurring.

Tabcorp has locked in a $3m break fee (up to $10m in certain circumstances) if the deal fails.

“The sale is expected to result in a pre-tax gain on sale of approximately $39m on completion, Tabcorp told investors on Tuesday.

Separately, the group also said an exclusive 20-year Tasmanian Monitoring Operator Licence was awarded to Max Regulatory Services to monitor all electronic gaming machines in hotels and licensed clubs in Tasmania.

MRS will pay the Tasmanian Government an upfront licence fee of $2m along with an additional $1m grant over the term of the licence to be paid into the Community Support Fund.

Shares in the $2.2bn gambling business last traded at 98c.