BetMakers Posts 3.7% Revenue Growth and Eyes US Market with LVDC Acquisition
BetMakers Technology Group reports solid Q3 FY25 financial gains alongside a strategic binding agreement to acquire Nevada’s LVDC, expanding its global racing technology footprint.
- Q3 FY25 revenue up 3.7% quarter-on-quarter
- Gross margin improved to 63.9%, moving toward 70% target
- Operating cost base reduced to $53.9 million annualised
- Positive operating cash flow of $3.0 million and adjusted EBITDA of $1.2 million
- Binding agreement to acquire Nevada’s LVDC, adding approximately A$4 million revenue
Global Expansion Through Strategic Acquisition
BetMakers Technology Group Limited has taken a decisive step to strengthen its position in the global racing technology market by signing binding terms to acquire Las Vegas Dissemination Company (LVDC). LVDC is the sole approved pari-mutuel service provider for Nevada’s gaming industry, servicing a diverse client base that includes sportsbooks, racebooks, bars, taverns, and online platforms. This acquisition is expected to contribute around A$4 million in revenue and significantly enhance BetMakers’ presence in the lucrative US market, particularly in Nevada’s premier casino sector.
The deal, announced in early June 2025, is subject to due diligence, regulatory approvals, and the novation of existing contracts. If completed, it will enable BetMakers to integrate its advanced wagering technology with LVDC’s established customer relationships and content offerings, creating new revenue channels and operational synergies.
Financial Momentum and Operational Discipline
BetMakers’ Q3 FY25 results underscore a company on an upward trajectory. Revenue grew by 3.7% quarter-on-quarter, reflecting the success of its growth initiatives and a robust sales pipeline. Gross margin improved markedly to 63.9%, edging closer to the company’s long-term target of 70%, supported by lower cloud costs and operational efficiencies.
Importantly, the company has reduced its annualised operating cost base from $65.3 million in FY24 to $53.9 million in Q3 FY25 (excluding restructuring costs), demonstrating a disciplined approach to cost management. This has translated into positive operating cash flow of $3.0 million and an adjusted EBITDA of $1.2 million for the quarter, signaling improved profitability and financial health.
A Comprehensive Platform with Expanding Reach
BetMakers continues to leverage its scalable global platform that powers betting on racing across more than 30 countries, servicing over 60 online wagering operators and holding more than 45 regulatory licenses. The company’s product suite spans fixed odds and tote betting, managed trading services, data feeds, streaming, and point-of-sale software, offering a unique full-service solution unmatched by competitors.
Strategic partnerships, including those with major sportsbook and iGaming platform providers, are expected to accelerate international distribution and adoption of BetMakers’ turnkey products. The LVDC acquisition complements this strategy by embedding BetMakers deeper into the North American market, particularly in Nevada’s regulated gaming environment.
Looking Ahead – Integration and Growth Prospects
While the acquisition of LVDC is promising, it carries typical integration risks and uncertainties, including regulatory approvals and contract novations. BetMakers anticipates the acquisition will be cash flow positive within 12 months, driven by cost efficiencies and technology-enabled growth opportunities.
As BetMakers continues to execute on its transformation strategy, investors will be watching closely to see how the company capitalizes on its expanding network and product breadth to sustain revenue growth and margin improvement in FY26 and beyond.
Bottom Line?
BetMakers’ strategic acquisition and solid financial progress position it well for accelerated growth, but successful integration of LVDC will be key to unlocking full value.
Questions in the middle?
- Will BetMakers secure all necessary regulatory approvals and successfully novate LVDC’s contracts?
- How will the integration of LVDC’s operations impact BetMakers’ cost structure and profitability?
- What competitive responses might emerge in the global racing technology market following this acquisition?