BetMakers Reports 3.7% Revenue Growth and 63.9% Gross Margin Ahead of Equity Raise
BetMakers Technology Group launches a $13.5 million equity raise to fund the acquisition of Las Vegas Dissemination Company and strengthen its financial position amid improving operational metrics.
- Non-underwritten equity raise totaling approximately $13.5 million
- Proceeds to repay debt, fund New Jersey Fixed Odds content, and acquire LVDC
- Q3 FY25 revenue up 3.7% quarter-on-quarter with gross margin improving to 63.9%
- Positive operating cash flow and adjusted EBITDA reported for Q3 FY25
- LVDC acquisition expected to generate around $4 million in revenue and expand US market presence
Strategic Capital Raise to Accelerate Growth
BetMakers Technology Group Limited has announced a significant equity raising initiative aimed at accelerating its transformation and supporting future growth ambitions. The company is seeking to raise approximately AUD 13.5 million through a combination of an institutional placement, a conditional placement to Tekkorp Holdings LLC, and a share purchase plan (SPP) for eligible shareholders in Australia and New Zealand.
The equity raise is non-underwritten and priced at $0.10 per share, representing a modest discount to recent trading prices. The funds raised will be strategically deployed to repay outstanding debt, finance content and access agreements including payments related to New Jersey Fixed Odds, and crucially, to fund the proposed acquisition of Las Vegas Dissemination Company (LVDC), a key player in Nevada’s pari-mutuel wagering market.
Financial Momentum and Operational Discipline
BetMakers has demonstrated tangible progress in its financial performance, with Q3 FY25 revenue increasing by 3.7% quarter-on-quarter. The company’s gross margin has improved significantly, rising from 57.8% in Q1 FY25 to 63.9% in Q3 FY25, edging closer to its long-term target of 70%. This margin expansion is supported by cost efficiencies, including a reduction in the annualised cost base from $65.3 million in FY24 to $53.9 million in Q3 FY25, excluding restructuring costs.
Importantly, BetMakers reported positive operating cash flow of $3.0 million and an adjusted EBITDA of $1.2 million for the quarter, signaling a financial inflection point. The company expects to deliver both revenue growth and free cash flow in FY26, underpinning its confidence in the ongoing transformation strategy.
LVDC Acquisition – Expanding US Footprint
The acquisition of LVDC represents a strategic move to cement BetMakers’ presence in the lucrative US wagering market, particularly in Nevada. LVDC is the only approved pari-mutuel service provider for Nevada’s gaming industry, servicing sportsbooks, racebooks, bars, taverns, and online platforms. The acquisition is expected to contribute approximately AUD 4 million in revenue and offers platform synergies by integrating BetMakers’ advanced wagering technology with LVDC’s established customer relationships.
This deal is subject to regulatory approvals, due diligence, and third-party consents, with binding terms already signed. If completed, the acquisition will broaden BetMakers’ content offering and open new revenue channels, particularly in the Las Vegas market, a global gaming hub.
Risks and Market Considerations
While the company’s outlook is positive, BetMakers acknowledges several risks inherent in its business and the broader wagering industry. These include regulatory compliance challenges across multiple jurisdictions, technology platform risks such as cyber security and system reliability, competitive pressures from other wagering technology providers, and economic factors that could impact discretionary spending on entertainment.
The equity raise itself is non-underwritten and contingent on shareholder approval for the Tekkorp placement, introducing some execution risk. Additionally, the completion of the LVDC acquisition depends on satisfying several conditions precedent, including regulatory approvals.
Looking Ahead
BetMakers is positioning itself for a pivotal growth phase, leveraging improved financial metrics and strategic acquisitions to enhance its global wagering platform. The successful deployment of the equity raise proceeds and integration of LVDC will be key milestones to watch as the company seeks to capitalize on expanding opportunities in the global racing and wagering market.
Bottom Line?
BetMakers’ capital raise and LVDC acquisition set the stage for growth, but execution risks remain as it navigates regulatory and market challenges.
Questions in the middle?
- Will BetMakers secure all necessary regulatory approvals to complete the LVDC acquisition on schedule?
- How will the integration of LVDC’s operations impact BetMakers’ financial performance and market positioning?
- What are the potential implications if the equity raise does not fully subscribe or if shareholder approval for the Tekkorp placement is delayed?