As internet bookies prepare for regulatory headwinds, two of Australia’s most well-known bookmakers, Michael Sullivan and Matthew Tripp, are in talks to combine their wagering brands in an effort to grow their businesses.
A merger has been discussed between Mr. Tripp, the chairman of BetR, and Mr. Sullivan’s ASX-listed company BlueBet, according to two persons familiar with the situation who spoke anonymously because no agreement has been signed.
According to two betting sources, BetR had expressed interest in acquiring BlueBet; however, other sources stated that any successful transaction would take the shape of a merger. It is unclear if any deal would cause BlueBet to be taken off the ASX’s list.
Although negotiations are still going on, nothing guarantees an agreement will be signed. The sources were informed by BlueBet’s chairman, Mr. Sullivan, that the company would not comment on market rumors. In compliance with our disclosure duties, the company will update the market and continuously investigate possibilities to maximize value for shareholders,” he stated. BetR choose not to respond.
A possible partnership between the two companies might increase market share for BetR, which debuted in late 2022 and has struggled due to the withdrawal of two significant investors, News Corp. and Tekkorp, and BlueBet, which now holds approximately 2% of the market. While BetR’s revenue is projected to be closer to $2 billion by racing sources, BlueBet’s turnover for the most recent fiscal year was $536.6 million.
It is becoming harder for internet bookies to turn a profit as a result of a drop in discretionary spending and a slowdown in the number of horse racing bettors. Moreover, margins are getting narrower and investing in new items is becoming more challenging due to rises in point-of-consumption taxes in Victoria, NSW, and QLD. BlueBet has been able to evade these pressures during the last quarter. In the three months ending September 30, turnover—the quantity of wagers made—rose by 8% while income increased by 7%.
