BetMakers Technology Group has entered into market access agreements with Bet365 to supply the operator with its fixed odds horse racing betting offering in New Jersey and Colorado.
Under the agreements, BetMakers will offer fixed-odds bets on thoroughbred horse racing to Bet365 customers across both states. Both deals run for a period of two years.
Bet365 will be licensed to distribute BetMakers’ thoroughbred racing content to players in New Jersey. The arrangement also covers thoroughbred and harness racing in Colorado.
In New Jersey, Bet365 will pay BetMakers a market access fee. This is based on a percentage of all fixed-odds bets placed in the state on thoroughbred racing events. In addition, Bet365 will pay a content fee based on a percentage of fixed-odds bets placed in both New Jersey and Colorado on applicable BetMakers Global Racing Network content.
BetMakers said the deal marks the entrance of the first major operator to New Jersey’s fixed-odds horse racing market. As such, BetMakers said the revenue value of the deals is yet to be established.
However, BetMakers did say it expects the contracts to be material to its strategic progress. It also noted the initial deals could encourage other operators to enter similar arrangements and for other states to further consider fixed-odds approvals.
BetMakers CEO hails significant milestone
Speaking about the deals, BetMakers CEO Jake Henson said he is excited to be launching fixed-odds betting with Bet365. He said the partnership is a “significant” milestone for the group.
“This is a significant milestone for BetMakers and aligns with our strategy for fixed odds betting on thoroughbreds in the US,” Henson said.
“The sports betting market in the US is starting to mature and the interest from operators in horse racing as a product is expected to become even stronger. The high frequency of horse racing can deliver high engagement and high margin returns to operators.
“We believe the opportunity for both BetMakers and the racing industry more broadly to be significant in the long term.”
Henson added that BetMakers will look to build on this partnership and seek other, similar deals in the US.
“We are always actively working with rights holders to deliver opportunities for sustainable industry returns and open new opportunities in expanding growth markets,” he said.
“This opportunity ticks both of those boxes. We look forward to helping our partners build out a global race book.”
BetMakers cuts adjusted EBITDA loss in Q3
The deals come on the back of BetMakers posting its Q3 results in late April. While the group saw revenue slip 4.1% to AU$22.3m (£11.9m/€13.7m/US$14.8m), there was better news on the bottom line.
BetMakers put this down to soft Australian trading results. It also noted the impact of slightly delayed delivery of key international deals with clients outside of Australia.
In terms of activity in the US in Q3, BetMakers said its roll-out of an embedded tote solution with Caesars in Nevada is progressing. BetMakers is also now active in Iowa, with the Bet365 deals expanding on this.
Adjusted EBITDA loss for Q3 amounted to $10.7m, some 25.6% less than in the previous year. Furthermore, net cash from operating activities in Q3 hit $1.0m, in contrast to the $5.0m loss reported last year.
