News Corp has announced it is entering the sports betting market.
In a deal struck with betting entrepreneur Matt Tripp and Las Vegas-based digital sports-gambling firm, Tekkorp, the betting venture, named NTD, as reported by The Australian.
BetMakers will provide the technology services for NTD, which is set to launch in the second half of this year.
It will be led by Tekkorp chairman and CEO Matt Davey who is stepping down from the BetMakers board. BetMakers is the biggest shareholder in Tekkorp.
The venture will apply for a sports bookmaker licence for the new online betting product for Australian and New Zealand punters to bet on racing and sports.
It will be promoted across News Corp’s major metropolitan mastheads and news sites publications – including The Australian, Daily Telegraph, Herald Sun, Courier-Mail – and Foxtel’s sports streaming service Kayo.
Tripp – who is the former boss of Sportsbet, CrownBet and BestEasy – joined BetMakers last year to lead its growing $75million and advice on key deals in Australia and abroad.
James Nicolaou, Shaw and Partners senior investment manager, told the publication Tripp “masterminded what looks to be a cracking deal” with News Corp.
“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,” he said, adding that in the FY22 revenue of $95m, having delivered $43m for the 1H22.
Todd Buckingham, BetMakers chief executive, called the deal 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.”
Tripp said: “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.
“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,” he added.
Davey called the joint venture with News Corp 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.