BetMakers Technology Group and Bet365 have entered into agreements to provide the operator their fixed odds horse race betting offerings in New Jersey, Colorado.
Bet365’s customers in both states will be able to place fixed odds wagers on thoroughbred racing through BetMakers. The two deals are for a duration of 2 years.
Bet365 has been licensed by BetMakers to distribute the thoroughbred race content of Bet365 to New Jersey players. This arrangement covers Colorado thoroughbred racing and harness races as well.
Bet365 pays BetMakers in New Jersey a fee for market access. The fee is calculated as a percent of the fixed odds bets on thoroughbred races in New Jersey. Bet365 also pays a fee for content based on the percentage of bets on fixed odds placed in New Jersey or Colorado, on content from BetMakers’ Global Racing Network.
BetMakers says the deal represents the entry of the first major player into New Jersey’s fixed odds horse racing market. BetMakers has not yet determined the value of these deals.
BetMakers has stated that it does not expect the contracts to have a significant impact on its strategy. The initial deal could also encourage other operators and states to consider further fixed odds approvals.
BetMakers CEO celebrates significant milestone
Jake Henson, BetMakers’ CEO Jake Henson expressed his excitement at the launch of fixed odds betting in partnership with Bet365. The partnership, he said, is “significant”.
Henson stated that “This represents a major milestone for BetMakers, and is in line with our US strategy of fixed odds wagering on thoroughbreds.”
The US sports betting market is maturing and operators are expected to show an even greater interest in horseracing as a sport. Horse racing is a high-frequency event that can provide operators with high returns and engagement.
We believe that the opportunities for BetMakers as well as the wider racing industry are significant on the long-term.
Henson said that BetMakers would look to expand on this deal and pursue other similar ones in the US.
He said: “We work with the rights holders constantly to provide opportunities for industry return and new growth opportunities.”
This opportunity checks both boxes. “We look forward to assisting our partners in building out a global racing book.”
BetMakers reduces adjusted EBITDA losses in Q3
BetMakers announced its Q3 Results in late April. While the group saw revenue slip 4.1% to AU$22.3m (PS11.9m/EUR13.7m/US$14.8m), there was better news on the bottom line.
BetMakers attributed this to the weak Australian trading results. The company also noted that the delivery of important international deals to clients in Australia was slightly delayed.
BetMakers reported that its embedded tote system with Caesars Nevada, which is currently being rolled out in Q3, has progressed. BetMakers has also expanded its operations in Iowa with Bet365.
The adjusted EBITDA losses for the third quarter were $10.7m. This is 25.6% lower than last year. Net cash generated from operations in Q3 was $1.0m, compared to the loss of $5.0m reported in last year’s quarter.
