News Corp expands into sports betting market, striking deal with Matt Tripp, Betmakers and Matt Davey

A new online sports betting brand will be offered to punters in Australia and New Zealand under a consortium, including News Corp, Betmakers and Tekkorp.

Matt Tripp has ‘masterminded what looks to be a cracking deal’, Shaw and Partners senior investment manager James Nicolaou said.

News Corp is entering the sports betting market via a consortium, including wagering veteran Matt Tripp and Las Vegas digital sports-gambling firm Tekkorp.

The new wagering venture will apply for a sports bookmaker licence under which it will operate a new online wagering product for Australian and New Zealand punters to bet on racing and sports.

ASX-listed BetMakers will be the technology services provider for the venture, named NTD, which will launch in the second half of this year. Tekkorp, headed by Matt Davey, is BetMakers’ biggest shareholder.

The news sent BetMakers shares soaring 20.9 per cent to 78c on Thursday, compared with a 0.3 per cent gain across the broader sharemarket.

The venture will be promoted across News Corp’s Australian assets, which include The Australian, Daily Telegraph, Herald Sun, Courier-Mail and other major metropolitan mastheads and news sites, as well as Foxtel and sports streaming service Kayo.

It comes as Mr Tripp – an Australian online betting pioneer and former boss of Sportsbet and later CrownBet and BestEasy – joined BetMakers last year to lead a $75m raising and advice on key deals in Australia and overseas.

Shaw and Partners senior investment manager James Nicolaou said Mr Tripp had “masterminded what looks to be a cracking deal,” regarding the News Corp wagering venture.

“It is a 10-year deal, with potential revenues of more than $300m. Minimum earn for BET (Betmakers) is $80m revenue as a base case,” Mr Nicolaou wrote in a note to investors.

“To put that into perspective, they should report FY22 revenue of ~$95m, having delivered ~$43m for the 1H22.”

BetMakers chief executive Todd Buckingham said it was a “landmark agreement”.

“We are delighted to have entered into this landmark Agreement to be the B2B supplier of wagering technology to a consortium with such high calibre investors, including a global media giant and two experts in wagering, Matt Tripp and Matt Davey,” he said.

“We believe it validates our strategy and supports our view that the end-to-end B2B solution the company provides is an efficient and commercially viable way to successfully launch a wagering platform in today’s global wagering markets.

“While this deal is focused on the Australian market, we feel this model will play an important part of our international expansion.”

BetMakers issued Mr Tripp 35 million Class A performance rights, which vest upon delivery of a strategic deal. He has agreed to increase the escrow arrangement to 100 per cent on the Class A performance rights, and any shares issued on conversion, for a period of 3 years in return for consideration of $15m.

“I am delighted to be a part of delivering a material agreement for the company, a company that I have been significantly involved with as a strategic advisor and shareholder,” Mr Tripp said.

“I have seen first-hand the technology and solutions that BetMakers has developed and implemented, with the company continuing to set new global benchmarks in delivery for wagering operators and racing bodies around the world.

“BetMakers provides one of the best end-to-end packages of technology and trading services in the global B2B wagering market, which is why I am happy to invest in a new wagering venture that will rely upon it.”

Mr Davey, who will step down from BetMakers board, said the joint venture was a “significant investment by Tekkorp Capital”.

“As the largest shareholder of the company (BetMakers), I have been suitably impressed during my time on the board not only by the company’s corporate structure, governance and strategy but in particular the ability of management to execute on the enormous opportunity in front of it,” he said.

“I am very excited by its future and intend to remain a supportive long-term shareholder. The recent appointments of two new highly respected independent non-executive directors, Anna Massion, who I have known through dealings in the US, and Rebekah Giles in Australia, adds great strength to the company’s foundation board members, including chairman Nick Chan, and places it in excellent shape to oversee the implementation of an exciting next phase of growth by BetMakers’ management.”