SBC News Voice of the Sports Betting Industry
BetMakers Technology Group has announced its acquisition of RACELAB’s global assets, along with the amendment of its Betr agreement.
The move adds leading race form, preview, and statistics technology to BetMakers’ ecosystem, as well as proprietary fixed odds pricing technology and associated algorithms.
Meanwhile, the acquisition also offers potential for BetMakers to further expand its services in the harness and greyhound form and preview racing sectors and bring new customers to BetMakers.
The firm has also detailed a total consideration of A$1.5m in cash with a clawback of up to A$500k dependent on key customer novation within 30 days.
The deal provides an ongoing partnership with global racing rights holder SIS (Sports Information Services Limited) to develop products and services for the firm’s global customers. UK-based SIS has been a key investor in racing data science from RACELAB since 2021.
Coupled with this announcement, BetMakers also revealed deferred consideration payment relating to its buyout of Punting Form. This buyout was completed in November last year.
BetMakers commented its Board ‘determined to pay the remaining Special Deferred Amount in relation to the Punting Form acquisition of $2.5m in the form of $1m in cash and $1.5 million in Shares’.
It added: “50% of the Punting Form Shares issued to be escrowed for 12 months from the date of issue and the remaining 50% of the Punting Form Shares issued to be escrowed for 24 months from the date of issue.”
Lastly, in terms of its Betr partnership, the company will now pay BetMakers agreed amounts for fees payable under the agreement, including $3.75m which was paid to the firm in March 2024.
BetMakers has been a key betting technology provider to Betr since the sportsbook was launched as an Australian market challenger by NTD and News Corp back in 2021. The contract is due to terminate later this year.
In respect of ongoing services to be provided by BetMakers until 31 August 2024, $2.25m is to be paid by 14 June 2024, and an amount between $1.5m and $2.0m is to be paid by 13 September 2024.
Finally, additional amounts are dependent on the performance of the Betr platform prior to a forthcoming customer migration, and a revenue share trail.
The technology and service solutions company stated: “Betr will continue to use BetMakers’ service under a reduced service arrangement until customer migration, relieving BetMakers from the provision of certain premium services to Betr.
“The changes amount to significant cost savings and efficiencies for BetMakers, and expedite the timeline for roll-out and launch of the NextGen platform into Global markets.
BetMakers’ agreement with Betr is proposed to terminate following the completion of the customer migration.
Should customer migration not complete before 1 October 2024, Betr will pay BetMakers a reduced fee of $500,000 per month from 1 October 2024 for the remaining term until such time as Customer Migration (if any) occurs on the basis of the reduced service arrangement.
