Tabcorp Snaps Up Wagering Tech Provider BetMakers in $200 Million Deal

 Tabcorp Holdings has announced on Monday that it will acquire BetMakers Techology Group, the B2B technology firm for AU$267 million (US$189 million) through a Scheme of Arrangement, with cash consideration of AU$0.24 per share implying an equity value of approximately AU$283 million (US$200 million) on a fully diluted basis. Notably, the transaction will result in a maximum issuance of 70.7 million Tabcorp shares, representing 3.1% of current shares outstanding. The deal aims to deliver significant operational benefits, with Tabcorp targeting AU$30 million in run-rate cost synergies by the end of year two. The acquisition is projected to be earnings per share accretive from year two and double-digit EPS accretive from year three.

Tabcorp Acquisition Details: $200M Deal Structure Unveiled

Under the binding agreement, BetMakers shareholders receive the cash consideration as default payment, with premiums of approximately 41%, 42%, and 37% against the company’s one-month, three-month, and six-month volume-weighted average prices, respectively. The offer price represents a substantial uplift from recent trading levels, positioning the transaction as a significant liquidity event for BetMakers investors.

Shareholders may elect to receive part of their consideration in newly issued Tabcorp shares instead of cash, subject to a 25% cap on total transaction consideration. The scrip alternative prices new Tabcorp shares at AU$1.00 per share, representing approximately a 12% premium to the operator’s last close. At maximum election levels, Tabcorp would issue up to 70.7 million new shares.

The BetMakers board has unanimously recommended the scheme, provided no superior offer emerges and an independent expert concludes the arrangement serves shareholders’ best interests. Directors controlling around 10% of shares have indicated they will vote in favor on the same basis. Mutual break fees of AU$2.83 million apply to the transaction.

Completion requires shareholder and court approval, clearance from the Australian Competition and Consumer Commission, consents from gaming and racing authorities, and other regulatory conditions. Implementation is anticipated during Q3 FY27. Tabcorp puts pro forma net leverage at roughly 1.9 times as of December 2025, comfortably inside its 2.5 times ceiling.

How Will This Transaction Accelerate Tabcorp’s Wagering Strategy?

The Tabcorp acquisition advances three strategic pillars that reshape the operator’s competitive position. The transaction accelerates technology modernization by transitioning to a cloud-native wagering platform, leveraging BetMakers’ successful transformation over the past two years. This shift enhances product innovation, user experience, and operational efficiency while establishing a global B2B growth engine that combines complementary assets in wagering, media, and technology.

Gillon McLachlan, Tabcorp Managing Director and CEO, stated that BetMakers “has undergone a significant transformation over the past two years and built impressive wagering technology and a talented team”. Accessing these capabilities will fast-track product ambitions, particularly for the company’s media and tote offering.

The integration targets operational efficiencies through specific mechanisms: rationalization of data centers and technology contracts, replacement of existing platforms with BetMakers solutions, and streamlining corporate support functions. Besides the AU$30 million cost synergy target, the combination creates incremental revenue growth potential within existing media and tote assets.

BetMakers CEO Jake Henson emphasized the shared vision: “Bringing together Tabcorp’s rights, content and relationships with BetMakers’ platforms, data and B2B wagering services will create a more complete and compelling global offering for our customers”. The financial structure maintains balance sheet strength, with pro forma leverage at approximately 1.9 times.

What Do Industry Leaders Say About the Merger?

Both companies’ leadership expressed confidence in the strategic alignment underlying the Tabcorp acquisition. Gillon McLachlan highlighted that the transaction “will accelerate our strategy across multiple areas,” noting BetMakers’ “significant transformation over the past two years”. The former AFL boss characterized the combination as creating “a differentiated offering that will unlock growth and deliver attractive financial returns”.

McLachlan positioned the deal within Tabcorp’s broader evolution, stating the company remains “midway through its strategic transformation, with strong foundations established”. The acquisition provides “an excellent opportunity to accelerate our ambitions”, particularly as BetMakers brings “impressive wagering technology and a talented team” to enhance capabilities.

Similarly, Jake Henson endorsed the merger’s rationale, emphasizing alignment between organizations. “Having spent time with the Tabcorp team, it is clear we share a common purpose: to build a market-leading global wagering and media business”, the BetMakers CEO stated. Henson framed the integration as complementary, with Tabcorp contributing “rights, content and relationships” while BetMakers adds “platforms, data and B2B wagering services”.

Entain Decides to Close the TAB Racing Club

Entain has announced the closure of its TAB Racing Club in New Zealand, the decision marks a new strategy, focusing on its core wagering business and ensuring long-term sustainability. The TAB Racing Club, which was launched just a year ago, has garnered a membership of approximately 18,000 participants. However, the operational costs associated with the club, estimated at NZ$2.5 million annually, have been deemed unsustainable in light of Entain’s strategic priorities. The TAB Racing Club was introduced in 2024 as an innovative initiative aimed at enhancing customer engagement through exclusive racing experiences. Members enjoyed unique access to racing events, fostering a sense of community among racing enthusiasts. Despite its initial success in attracting a substantial membership base, the financial viability of the club has come under scrutiny. Entain’s decision to wind down the TAB Racing Club is primarily driven by financial considerations. The annual operating costs, which amounted to NZ$2.5 million, were increasingly viewed as a burden that could not be justified against the backdrop of the company’s broader strategic goals. Chief Executive Andrew Vouris described the closure as a “disciplined and responsible” move, emphasising the need to streamline operations and focus on areas that promise better returns. Despite the closure of the TAB Racing Club, Entain remains committed to the New Zealand racing industry. The company has reaffirmed its dedication through its longstanding partnership with TAB New Zealand, which spans over 25 years. This partnership continues to provide significant funding to the racing sector, ensuring that the industry remains robust and sustainable. The TAB Racing Club was introduced in 2024 as an innovative initiative aimed at enhancing customer engagement through exclusive racing experiences. Members enjoyed unique access to racing events, fostering a sense of community among racing enthusiasts. Despite its initial success in attracting a substantial membership base, the financial viability of the club has come under scrutiny. Entain’s decision to wind down the TAB Racing Club is primarily driven by financial considerations. The annual operating costs, which amounted to NZ$2.5 million, were increasingly viewed as a burden that could not be justified against the backdrop of the company’s broader strategic goals. Chief Executive Andrew Vouris described the closure as a “disciplined and responsible” move, emphasising the need to streamline operations and focus on areas that promise better returns. Despite the closure of the TAB Racing Club, Entain remains committed to the New Zealand racing industry. The company has reaffirmed its dedication through its longstanding partnership with TAB New Zealand, which spans over 25 years. This partnership continues to provide significant funding to the racing sector, ensuring that the industry remains robust and sustainable. Entain has pledged to honour all existing Racing Club experiences until the conclusion of New Zealand Cup Week in Christchurch this November. This commitment reflects the company’s intention to ensure a smooth transition for its members, who have invested time and resources into the club. As part of the winding down process, Entain has initiated a formal procedure to sell the club’s horses. This process involves independent appraisals to ensure that animal welfare is prioritised during the transition to new owners. The company aims to maintain a responsible approach throughout this process, reflecting its commitment to ethical practices in the racing industry. With the closure of the TAB Racing Club, Entain is realigning its focus towards its core wagering business. This strategic shift is designed to enhance operational efficiency and drive returns to the racing industry. By concentrating resources on its primary betting operations, Entain aims to improve customer experiences and innovate its product offerings. Entain’s commitment to enhancing customer experience remains central to its operations. The company says it is dedicated to providing a seamless betting experience, leveraging technology and data analytics to better understand customer preferences. This focus on customer-centricity is expected to drive engagement and loyalty in an increasingly competitive market. The closure of the TAB Racing Club provided a unique platform for engagement, its dissolution may lead to a gap in community-driven initiatives. However, Entain’s ongoing support for TAB New Zealand and its commitment to funding the racing industry are expected to mitigate some of these concerns. Entain’s decision reflects broader trends within the gaming industry, where companies are increasingly scrutinising the financial viability of their initiatives. Operators are compelled to make strategic decisions that prioritise sustainability and profitability. This trend underscores the importance of aligning business operations with long-term goals.

Online betting sites crashed in lead-up to Melbourne Cup

Online sports-betting sites crashed nationwide in the lead-up to the Melbourne Cup, the busiest betting event of the year.

Wagering services run by Sportsbet, Ladbrokes and online betting exchange Betfair all went down, with punters temporarily unable to place bets on their smartphone apps or computers.

Twenty minutes before the main race on Tuesday, Tabcorp also reported problems with its third-party payment providers. It is understood the payment issues were fully restored just before the Cup.

Online bookmaker BetEasy, the third-largest provider behind Sportsbet and Tabcorp, was signing up as many as 500 new customers a minute in the lead-up to the 3pm race as a result of its competitors’ technical problems.

Ladbrokes told punters, via its social media channels, that it was doing all it could to bring services back online as soon as possible, but it was unable guarantee they would be available in time for the main race at 3pm. Ladbrokes’ website and app also went down in the run-up to last year’s Melbourne Cup Day, setting off a storm of social media complaints from punters.

Shortly after 2.15pm on Tuesday, Sportsbet’s mobile betting platform was back up and running, while technical teams were continuing to work on the desktop platform. In a statement, Sportsbet said it had experienced technical issues due to “unprecedented demand and we fixed these issues as a priority”. “Hundreds of thousands of our customers enjoyed a punt on the big race,” a spokesman said. “We sincerely apologise to those who experienced issues or inconvenience.”

Betfair’s site crashed temporarily just before 2pm but the company said it was back working again within about five minutes.

For the nation’s wagering industry, Melbourne Cup Day is easily the biggest betting day on the calendar.

Australian sports-betting companies ramp up staffing and technology to cater for the extraordinary volume of bets placed on the day. Australia’s biggest gambling company, Tabcorp, which runs retail and online wagering services, said it expected to process 15 million bets on Tuesday, with a peak of 4300 bets in the busiest single second.

Wagering data from last year's Melbourne Cup Day showed that, in the immediate lead-up to the main race, a peak of 850 bets a second were being placed through the largest online bookmaker, Sportsbet. The busiest single minute saw 26,000 bets placed.

Punters took to social media to vent their frustration at the meltdown on Tuesday afternoon, with some claiming their deposits were taken in the moments before the betting apps crashed.

“So I placed a bet online 10 mins ago and my deposit is gone but bet is stuck in pending telling me to 'check back in a few minutes,” one punter tweeted. “Did it go through or is it lost?”

Ladbrokes apologised for the crash, and said it understood that the timing “couldn't be worse”

One furious punter demanded his bets be refunded, and for his account with Sportsbet to be closed.

According to figures released on Tuesday afternoon, the biggest bet placed via Tabcorp on the Cup was $100,000 on Yucatan at $6/$2.25. The largest placed on the winner, Cross Counter, was $50,000 at $10.

William Hill announces technical migration of Australian brands into one platform

William Hill has announced the complete migration of its three acquired Australian brands - Centrebet, Tom Waterhouse and Sportingbet Australia. The integration will see all brands managed under a single platform, promoting unified technologies and products to its Australian customer base.

William Hill will maintain all three brands active, which counters previous industry speculation that the operator would be looking to condolidate its Australian brands into one.

2013 saw William Hill acquire all three brands in order to enter the Australian online sport betting market. The acquisition saw William Hill become the third biggest online gambling operator behind Paddy Power and Tabcorp. The combined acquisition contributed £86.7 million in net revenue and £12 million in profit for 2013 performance.

William Hill will re-launch Sportingbet.com.au with a new mobile friendly responsive site. The operator further announced that the re-launch would be supported by an ongoing Australian tv advertising campaign which would be promoted by former Australian international cricketer Shane Warne (former brand ambassador for 888 Poker).

Live betting is here to stay, says Tabcorp

Live betting on sport is here to stay, and the Federal Government needs to do more to regulate it, says gambling firm Tabcorp.

Tabcorp chief executive David Attenborough said today the government was examining the issues of broadcasting odds during live events and the provision of live betting over the internet, among other matters.

Consumers can now bet on live sporting events over the phone but not over the internet.

"Despite this prohibition, a number of wagering operators have offered live online betting to their Australian customers," Mr Attenborough told an American Chamber of Commerce in Australia luncheon.

"We are not aware of any of these operators being prosecuted for breaching the Interactive Gambling Act.

"Whereas operators such as Tabcorp, who comply with the law, are disadvantaged because some competitors ignore the prohibition, without consequence."

Mr Attenborough said live betting needed to be governed by consistent national rules that provide a level playing field for all participants.

Mr Attenborough said one could not stop people from betting on sport, especially when money flowed freely around the world.

He said betting on sports was becoming "part of everyday entertainment".

"Sport is much more exciting when you bet on it," he said.

Mr Attenborough said technology was boosting the gambling sector, particularly as gambling products were made available over mobile phones.

"Customers just want to transact, through technology, as easily as possible," he said.

"And you can deliver information easily."

Mr Attenborough said Tabcorp would, at some stage, like to break into Asian markets, but they were more complex, given religious and regulatory factors.

"India is a particularly difficult one to enter. There are a number of companies that are trying to enter it," he said.

"I think it's good in some of those markets to be a follower."