BetMakers (ASX:BET) is named as the platform technology provider by a consortium composed of Las Vegas Tekkorp digital chairman Matt Davey, well-known betting-industry executive Matthew Tripp’s trust, TGW and News Corp as it eyes the sports betting market in Australia. US News Corp is the owner of Dow Jones & Co. who is the publisher of The Wall Street Journal.
The new wagering venture will apply for a sports bookmaker licence under which it will operate a new online wagering product for Australian and New Zealand punters to bet on racing and sports, joining a competitive field in one of the most mature sports-betting markets in the world.
The 10 year deal is under a revenue share arrangement with potential revenues more than $300 million with the product launch slated for the second half of 2022.
BetMakers issued Matt Tripp 35 million Class A performance rights which is set to vest upon delivery of a strategic deal. Mr Tripp has agreed to increase the escrow arrangement to 100 per cent on the Class A performance rights, and any shares issued on conversion, for a period of 3 years in return for consideration of $15 million.
Mr Davey will step down from the BetMakers board but will remain a long-term shareholder of the company.
Shares are trading 21.7 per cent higher to 78.5 cents.