Tabcorp Targets Tech Overhaul With AU$283M BetMakers Deal

Tabcorp (ASX: TAH) is targeting a sweeping modernization of its betting technology after agreeing to acquire Australian B2B supplier BetMakers Technology (ASX: BET) for approximately AU$283 million ($200 million).

The deal will see Tabcorp purchase all BetMakers shares at a price of AU$0.24 ($0.17) in cash. BetMakers shareholders can elect to receive part of the payment in Tabcorp stock.

BetMakers shares traded at AU$0.17 ($0.12) at close on Friday (Aug 7), representing a 41% premium.

The BetMakers board has unanimously recommended that shareholders vote in favor of the deal. Pending shareholder and other regulatory approvals, both parties are aiming to complete the deal by Q3 2027.

Tabcorp shares were up almost 3% in trading following the announcement of the bid.

Speaking on an investor call shortly after the announcement, Tabcorp Managing Director and CEO Gillon McLachlan said the acquisition was “a unique opportunity to accelerate our transformation to a modernized technology-led company.”

Global B2B Growth Engine

Tabcorp highlighted technology modernization, greater speed and efficiency, and the creation of a “global B2B growth engine” as the key rationale behind the deal.

The company already has a long-standing commercial partnership with BetMakers, and said it is targeting AU$30 million ($21.2 million) in cost synergies after two years of ownership. The savings would come from “operational efficiencies and technology cost savings.”

“BetMakers has undergone a significant transformation over the past two years and built impressive wagering technology and a talented team. Accessing those advantages will uplift our own tech capability and fast track our product ambitions,” added McLachlan.

BetMakers CEO Jake Henson said the two companies share a common purpose to build a market-leading global wagering and media business.

“Bringing together Tabcorp’s rights, content and relationships with BetMakers’ platforms, data and B2B wagering services will create a more complete and compelling global offering for our customers and an exciting future for our people,” he said.

From $3.1B Bidder to Takeover Target

The deal revives takeover discussions between the two companies that first surfaced in February. BetMakers confirmed at the time that it had held informal talks with Tabcorp over a potential acquisition.

However, BetMakers said those discussions had ceased without an offer being made. Six months later, the companies returned to the table with an agreed deal.

It also marks a remarkable reversal of BetMakers’ offer to purchase Tabcorp’s media and wagering divisions for AU$4 billion ($3.1 billion) of cash and equity in 2021. Tabcorp ultimately decided against selling the divisions.

BetMakers entered the deal on the back of an improving financial performance. The company reported revenue of AU$24.2 million ($17.1 million) for the quarter ended June 30, up 9.4% year-on-year. Adjusted EBITDA jumped 89% to AU$4.5 million ($3.2 million).

The performance was supported by a major partnership struck with Stake in late 2025 to expand the operator’s horseracing offering.