BetMakers praises North American market progress in Q1 FY23 report

BetMakers has praised the progress it has made in the North American market in the first quarter of its fiscal year 2023 (Q3 2022).
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BetMakers has praised the progress it has made in the North American market in the first quarter of its fiscal year 2023 (Q3 2022).

The sportsbook platform provider highlighted the distribution of its content from the region into the UK and Australian markets, as well as the launch of fixed-odds betting on thoroughbred horse racing in New Jersey, but its expanded adaption has been slower than expected.

Publishing its Q1 FY23 update, BetMakers declared cash receipts of $15.3m (AUS$23.8m), a 13% increase year-over-year (2022: $12.8m), with a cash balance of $41m.

The firm attributed the growth to Global Betting and a ‘stable’ Global Tote customer base.

Revenue improved by 19% YoY to $15.3m, with its Global Racing Network achieving the biggest increase YoY by 39%, with a quarter-on-quarter growth of 79% due to expanded wagering operator integrations and the PNGI offering commencement.

Global Betting Services saw their revenues rise YoY by 30% “due to increase in customers, increased turnover, offset slightly due to the restructured Waterhouse deal”, while Global Tote revenues rose at a steady rate by 7% YoY.

BetMakers also reported an improvement in its platform and Managed Trading Services offering, as its total client base grew to 24 following six new customer launches.

Turnover was greater than $1.3bn for the segment across these customers with an estimated more than 100,000 total downloads, 20% of Australian betting app downloads. 

BetMakers highlights North American progress

In North America, BetMakers secured a partnership with PENN Entertainment for the distribution of fixed odds, booked bets, and exchange wagering outside of the US and Canada.

Under the terms of the agreement, racing content from over 900 fixtures per year – including from PNGI, Monmouth Park, Kentucky Downs, Century Downs, and others – will be distributed by the platform to its customers. 

As part of the deal, BetMakers paid PENN Entertainment approximately $3.72m upfront as a first-year minimum guarantee.

The platform has also launched fixed-odds betting on thoroughbreds in the US, but only in New Jersey so far as regulatory constraints have restricted progress.

However, BetMakers noted that it is encouraged by the recent focus on the sport and is committed to its US rollout.

Outside North America, BetMakers amended its contract with NTD, the new micro-betting venture scheduled to launch in the Australian market as Betr (not to be confused with Jake Paul and Joe Levy’s betr in the US market).

The sportsbook’s OM Apps subsidiary will support the new brand with its platform, but following an update to the contract, betr plans to acquire O’Shea Bookmaking, a SaaS customer of BetMakers which trades as TexBet.

Betr will conduct the transaction with support from BetMakers, with the annual fee cap to be paid by NTD to OM Apps increased by $1.3m per annum over the next 10 years as part of the deal, resulting in the total payable amount rising by $13m.

NTD/Betr is expected to be a major sportsbook in the Australian market pending its launch, and it already has the backing of GTG Studios, Tekkorp Capital, and News Corp.

Following the end of its Q1, BetMakers informed its investors that it has agreed to acquire Punting Form, a horse racing intelligence and rating systems provider.