Betmakers Shares Flat on Penn National Deal
Betting tech provider BetMakers Technology Group [ASX:BET] has signed a data and vision content deal with Penn National Gaming.
BET shares were flat on the news, trading slightly down in late afternoon trade on Thursday, mirroring the broader market.
Over the past week, the BET stock rose roughly 10% after announcing an on-market share buy-back.
However, zooming out, BET shares are down 65% over the past 12 months.
BetMakers and Penn National Gaming: The Deal
Betmakers has won the rights to offer Penn National Gaming’s racing content internationally for fixed odds, booked bets and exchange wagering outside of the US and Canada markets.
BET said the rights include over 945 race meetings a year for distribution from July 2022 to globally licensed wagering operators.
BetMakers said its Global Racing Network model enables its rights holders across the globe to export content to a wider international market.
BET also briefly explained how its business model works.
‘The commercial model of the Global Racing Network is to provide rights holders in any country with incremental revenue streams by exporting their existing content into new international markets in a bundled package for wagering operators.
‘BetMakers receives a fee based on a percentage of turnover generated by wagering operators betting on the products in these new markets, while delivering rights holders new revenue.’
In a sense, BET acts like a middleman in the wagering industry, bringing together rights holders (who provide the content on which bets are made) and wagering operators.
Betmakers said it has entered a ‘commercially sensitive agreement’ to share revenue, with Penn to be paid a minimum guarantee amount annually.
The deal runs until the end of 2025.
BET share price outlook
BetMakers’ Global Racing Network Partnerships Manager, Kerry Gatten, commented on the deal:
‘We are delighted to offer Penn’s first-rate content to a global audience and increase the awareness of the valuable content US racetracks have to offer.
‘It is exciting that we get to deliver Penn’s extensive racing content into our network of operators globally.’
BetMakers has been focused on extending its international client base.
Recently BetMakers also gained a decade-long contract with NTD, which the company anticipates generating potential revenue over $300 million.
Last week BetMakers’ CEO, Todd Buckingham said:
‘We continue to take a disciplined approach to capital allocation, discerning between opportunities to invest for future growth, and we are constantly looking at methods of returning value to shareholders both organically and inorganically.
‘As a business we have signed and announced deals that we believe will give the Company strong organic growth in FY23 and we expect this momentum to continue.
‘BetMakers is in a strong financial position with our improving cashflow and with current market dynamics providing us with an opportunity to maximise shareholder value via a Buy-Back.’
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For Money Morning