Tabcorp signs binding AU$267m deal to buy BetMakers

Tabcorp Holdings has signed a binding agreement to acquire wagering technology group BetMakers Technology for approximately AU$267 million (US$188.6 million), according to an Australian Securities Exchange filing. Under a Scheme Implementation Deed, Tabcorp will pay A$0.24 per BetMakers share, an equity value of roughly AU$283 million on a fully diluted basis and a 45.5% premium to BetMakers' previous close. BetMakers' board is unanimously recommending the deal.

Deal structure and rationale

Tabcorp intends to integrate BetMakers' wagering technology platforms and B2B services into its own wagering and media operations, replacing legacy systems with BetMakers' product suite. Tabcorp chief executive Gillon McLachlan said the acquisition "will accelerate our strategy across multiple areas," citing the technology and team BetMakers has built over the past two years. BetMakers CEO Jake Henson struck a similar note, saying "we share a common purpose: to build a market-leading global wagering and media business," with Tabcorp's rights and content combining with BetMakers' platforms, data and B2B services.

Financial impact

Tabcorp expects cost synergies of up to AU$30 million by the end of its second year of ownership, drawn from consolidating data centres, corporate applications and technology contracts, plus efficiencies in corporate and support functions. The deal is expected to be earnings-per-share accretive from the second year after completion and double-digit accretive from the third year. BetMakers reported unaudited EBITDA of AU$14 million for the 12 months ended 30 June 2026. The purchase will be funded primarily from Tabcorp's cash reserves and undrawn debt facilities, and BetMakers shareholders can elect to receive up to 25% of their consideration in new Tabcorp shares.

News of the deal pushed BetMakers shares to a roughly six-month high. However, with completion targeted for the third quarter of Tabcorp's 2027 financial year, the stock is likely to trade at a discount to the offer price, reflecting time value and deal risk. Because the Tabcorp share component is capped at 25% of total consideration, most of the payout will not track Tabcorp's share price before closing.

Conditions and background

The acquisition is subject to BetMakers shareholder and court approvals, clearance from the Australian Competition and Consumer Commission, and regulatory consents from gaming and racing authorities in jurisdictions where BetMakers operates. A scheme booklet and independent expert's report are scheduled for distribution to BetMakers shareholders in late 2026.

The deal marks the second attempt by Tabcorp to buy BetMakers, following informal talks first floated in December 2025 that did not advance, according to both companies. Tabcorp's approach came after it reported higher revenue and a return to net profit, with McLachlan describing the company as "fitter" and "improved." Earlier this year, Tabcorp paid more than AU$2.7 million in penalties to the Australian Communications and Media Authority for telemarketing and spam breaches over a 16-month period. BetMakers, for its part, agreed last year to acquire Las Vegas Dissemination Company, which is expected to generate about AU$4.5 million in revenue in its first year post-acquisition.