In Australia and antipodean iGaming pioneer Matthew Tripp (pictured) has reportedly become the third party to make an official play for the wagering and media business of local bookmaker Tabcorp Holdings Limited.
According to a report from The Australian Financial Review newspaper, the man who helped to establish online sportsbetting firm BetEasy Proprietary Limited has lodged a non-binding cash-and-scrip offer through his new BetMakers Technology Group Limited entity worth in the region of $3.1 billion. The proposed deal would purportedly see his latest endeavor hand over in the region of $768 million in cash as well as shares worth around $2.3 billion so as to take over the enterprise responsible for an estate of roughly 4,400 land-based sportsbooks spread across the length and breadth of Australia.
The newspaper reported that Tripp helped to turn Sportsbet into Australia’s second-largest bookmaking brand behind Tabcorp Holdings Limited before going on to establish BetEasy Proprietary Limited in 2014 with help from Crown Resorts Limited. The quadragenarian purportedly sold his stake in this enterprise some five years later and in February invested about $19 million of his own cash to assist in the launching of BetMakers Technology Group Limited.
Tripp reportedly told The Australian Financial Review that his proposal would be supported by the nation’s horseracing industry and likely not face any scrutiny problems from the Australian Competition and Consumer Commission or the Foreign Investment Review Board. The entrepreneur purportedly went on to disclose that the combined business would be able to offer compelling international distribution especially in the United States where BetMakers Technology Group Limited already holds an exclusive ten-year deal to manage fixed-odds duties for the New Jersey Thoroughbred Horsemen’s Association and the owner of that state’s Monmouth Park Racetrack.
Reportedly read a statement from Tripp…
“I am happy with the bid and where we’ve landed. It’s a real win for shareholders every way I look at it. It’s not just about the biggest [bid] number, it’s who can execute and deliver best for the industry.”
The newspaper reported that the board of Tabcorp Holdings Limited is currently considering an analogous proposal lodged last month by British land-based and online sportsbook operator Entain thought to be worth approximately $2.7 billion. The executives are also purportedly contemplating a subsequent $3.1 billion offer from American private equity behemoth Apollo Global Management Incorporated that features a further $384 million for the target’s gaming machine services division.
Tabcorp Holdings Limited merged with local rival Tatts Group Limited in 2017 and currently holds about a 37% share of the Australian online and retail sportsbetting market. However, the enterprise earlier reportedly admitted that its media and wagering division, which is responsible for the Tab-branded estate of bookmakers, could be hived off because it was not proving to be as lucrative as its lotteries business.