Betr buys stake in rival bookmaker PointsBet in late spoiler for $352m Japanese bid
Matt Tripp, a pioneer in Australian sports betting, has eyed a tie-up with PointsBet before. His late share raid suggests the PointsBet-MIXI merger may be under threat.
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The Matt Tripp-backed gaming operator Betr Entertainment has acquired 19.9 per cent of ASX-listed online bookmaker PointsBet, in a move only disclosed to the stock exchange after the closing bell, which could scupper a $352m takeover bid.
PointsBet is the target of an agreed deal from MIXI, a Japanese gaming technology company, which PointsBet endorsed over a competing offer from Betr when it was known as BlueBet. PointsBet rejected that offer on the basis that it was not fully funded.
Mr Tripp, a pioneer in Australian sports betting, had eyed a tie-up with PointsBet before making a formal approach three years ago. His stake suggests the MIXI deal could be under threat. He was the architect of Betr and BlueBet’s merger.
“Further details will be provided in conjunction with an announcement in relation to the proposed capital raising,” Betr said in its ASX disclosure.
Betr has not given up on its PointsBet ambitions, with an investor presentation in March arguing it has the financial firepower and up to $100m in loans pledged from “credible lenders”. Its only condition was a short period of due diligence.
It also claimed at the time that its bankers would support an equity raising. Those investment banks were named as being Jarden Australia, Ord Minnett and Morgans Corporate.
The takeover battle comes as the broader gaming market is feeling the squeeze, with households cutting back on discretionary spending on cost-of-living pressures. At the same time, states have been looking to clamp down on gaming with point-of-sale-based taxes. PointsBet posted a loss of $3.3m for the December half at the earnings level, narrowed from more than $13m the same time a year earlier.
PointsBet shareholders were due to vote on the MIXI deal in June, after it offered $1.06 a share.
Betr has argued PointsBet shareholders would likely be significantly better off in all scenarios versus the Japanese group’s proposal, and has the backing of PointsBet investors.
PointsBet represents the last chance for Mr Tripp to put together a substantial listed wagering business on the ASX with a 10 per cent share of the Australian digital betting market.
If MIXI succeeds, Betr would be held to between 5 and 10 per cent of the market and trade as a perennial small cap.
Wilson Asset Management cut its interest in PointsBet in March below the 5 per cent threshold deemed substantial.
Originally published as Betr buys stake in rival bookmaker PointsBet in late spoiler for $352m Japanese bid
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