BlueBet and Betr, a strategic merger

Lea Hogg April 11, 2024

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BlueBet and Betr, a strategic merger

The long-anticipated merger between ASX-listed BlueBet and Matthew Tripp’s Betr has been finalized, marking a significant shift in the Australian wagering landscape. The merger, which has been under negotiation for several months, was confirmed by BlueBet on the ASX recently.

The merger is expected to triple BlueBet’s customer base under the age of 35 and equip Betr with superior technology. The two companies are yet to decide on a unified brand name for their joint venture, which is set to launch ahead of the spring racing carnival. Matthew Tripp, the chairman of Betr (pictured above), who also chairs the Melbourne Storm, will see his consortium, the Tripp Group, receive a majority of shares in BlueBet. The two companies are projected to turn a profit in the 2025 financial year.

The merger has been a topic of speculation for nearly a year, with rumours intensifying over the past month. This speculation was reflected in BlueBet’s share price, which surged 20 percent to 30￠ before entering a trading halt.

New era in Australian wagering market

Michael Sullivan, the head of BlueBet, believes that the merger will enable the company to compete more effectively with larger competitors such as Sportsbet, Entain, and Pointsbet. Sullivan, who sold SportingBet to William Hill for $660 million in 2013, expressed excitement about the growth opportunities and synergies that the merger will unlock.

The merger brings together two pioneers of online wagering in Australia, combining a wealth of experience and innovation. Andrew Menz, the CEO of Betr, echoed Sullivan’s sentiments, highlighting the heavy investment BlueBet has made in its technology and the potential benefits for customers of both companies.

Despite the promising outlook, BlueBet has faced challenges, with its share price falling by more than 80 percent since its ASX launch in 2021. The company has been impacted by the maturing industry, increased taxes, and rising costs.

The two entities are expected to integrate into the BlueBet platform ahead of this year’s spring racing carnival. Sullivan will remain as executive chairman until January 2025, at which point Tripp will assume the role of chairman. Menz will become the CEO of the new business, while BlueBet’s Bill Richmond will take on the role of COO.

To fund the transaction costs and growth of the merged business, BlueBet announced a $20 million equity raising at 21￠ a share. The merger, dubbed “the worst kept secret in wagering history” by Taylor Collison’s Andrew Orbach, marks a new era in the Australian wagering market. The focus of the new entity is expected to be on Australian operations, with a strategic review to be conducted on US operations.