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Betr Entertainment has stepped up efforts to acquire PointsBet, reshaping the competition in Australia’s sportsbook market. The updated bid raises the stakes in the face of a rival offer from Japanese tech firm MIXI and includes both cash and equity components.
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Betr Entertainment submitted a revised acquisition bid for PointsBet, raising the total offer to AU$360 million through a formal Scheme of Arrangement. The structure includes AU$260 million in cash and AU$100 million in Betr shares. The move follows Betr’s recent acquisition of a 19.9% stake in PointsBet, signaling a determined push to expand in the sports betting industry.
Part of Betr’s plan includes the sale of PointsBet Canada. A conditional agreement is already in place to offload the Canadian business to Hard Rock Digital for AU$29.6 million. This sale depends on both the successful completion of the PointsBet acquisition and approval from Hard Rock’s board.
Proceeds from that transaction would help lower Betr’s equity requirement from AU$160 million to AU$130 million. Current investors, including Chair Matt Tripp and former BlueBet Chair Michael Sullivan, have already pledged AU$20 million. Additionally, a AU$15 million loan note will convert into equity under the deal’s terms.
To fund the cash portion, Betr secured acquisition financing from National Australia Bank, worth AU$120 million. The company also plans to rely on pre-committed equity and asset sales, reducing the need to issue new shares and avoiding dilution.
Betr argues that its offer brings stronger long-term value than the bid from MIXI. Expected annual cost savings of more than AU$40 million are at the core of that claim. Using those projected savings, Betr estimates its offer could translate to a potential AU$1.33 per share for PointsBet shareholders—higher than MIXI’s proposal.
Despite the increased offer and financial backing, PointsBet’s board continues to support MIXI’s bid. Their endorsement carries weight, as shareholder approval is required under any Scheme of Arrangement, and most shareholders typically follow the board’s lead.
Matt Tripp remains confident in Betr’s bid. “The company’s offer was better than MIXI’s, as it offered greater certainty and strategic alignment,” he said.
Hard Rock’s involvement in the deal could further impact the North American gaming space. In 2023, Hard Rock acquired the U.S. B2C assets of Evoke, formerly known as 888 Holdings. If the PointsBet Canada sale goes through, it would further consolidate Hard Rock’s footprint in that market.
The race for PointsBet is now more competitive than ever, with both bidders presenting contrasting strategies and valuations. Shareholders will play the final role in determining which one moves forward.