BetMakers raises $24m as it targets US growth opportunities

Sports betting supplier BetMakers Technology Group has raised $24m (A$35m) in investments to fuel expansion into the US market.

BetMakers secured the eight-figure sum from domestic and international sources after offering a share price of A$0.37, with the placement being taken up by both new and existing shareholders.

The placement price of A$0.37 marks an 8.6% discount on BetMakers closing price of A$0.405 on 12 June. The settlement and allotment of the new shares garnered under the placement is expected to be completed on 22 June.

The company’s major shareholder, Tekkorp Capital LLC, was a cornerstone investor in the placement, while Canaccord Genunity was the lead manager and bookmaker for the process.

In March BetMakers signed an exclusive 10-year deal to distribute and manage fixed odds betting on horseracing in New Jersey, in partnership with Monmouth Park.

The New South Wales-based firm has since identified a “number of organic and inorganic opportunities to accelerate its growth, including its expansion into the US”.

BetMakers MD Todd Buckingham said the funds would allow the company to expand its international racing content across several territories.

Buckingham said: “The placement puts BetMakers in a strong position to pursue a number of near-term strategic opportunities and to continue to accelerate its growth plans.

“These plans include the distribution of fixed odds race betting into the US, the expansion of our managed trading services offering globally and the distribution of international racing content to wagering operators in Australia, the US and the UK,” he added.

Elsewhere, the supplier highlighted the company is performing well financially, despite the coronavirus outbreak.

The board of directors noted that for FY20 the group is on course for a positive EDBITDA, with the expectation to exit the financial year with an annual revenue run rate of A$12m.