Joining forces
BlueBet and Betr will be merging in an attempt to get a better foothold in the Australian betting market. They were started by experienced gambling investors Michael Sullivan and Matthew Tripp, respectively. The Tripp Group (TGW) will lead the new entity.
No decision was made about which of the brands will continue operating; the plan is to announce it before the Spring Racing Carnival in November.
plan to take advantage of cost efficiencies and synergies
The two companies don’t have too much crossover in their user bases and plan to take advantage of cost efficiencies and synergies that could lead to the new entity becoming profitable by the next financial year. They also estimate that the number of users younger than 35 years old will triple on BlueBet and Betr will benefit from a better user experience.
A great track record
The merger will still need to get the necessary approvals from shareholders and regulators to proceed. The Australian Securities Exchange (ASX)-listed BlueBet intends to raise AU$20m (US$13m) to cover the transaction fees. Current Betr Chief Executive Andrew Menz will assume the CEO role in the new company, with Tripp coming in as the chairman in January.
Matthew Tripp as one of the main drivers of introducing online sports betting in Australia
Many hail Matthew Tripp as one of the main drivers of introducing online sports betting in Australia. Tripp’s first major foray into the space was in 2005 after he bought Sportsbet for AU$250,000 (US$163,050) and transformed it into a highly popular destination for bettors before selling it in 2011 for AU$388m (US$253m) to Flutter Entertainment. He went on to launch BetEasy before selling twice – to Crown Resorts in 2014 and The Stars Group in 2019.
Tripp started Betr in October 2022 alongside News Corp and Tekkorp. The two other companies departed since then, with Tripp and the TGW investors remaining. To generate hype for the launch, Betr offered odds of 100/1 on numerous local sporting events to new signups, leading to an AU$40m (US$26m) payout on the 2023 National Rugby League (NRL) grand final.
Talking about the planned merger, Tripp said that “BlueBet has invested heavily in technology and now has a highly-scalable platform to bring in Betr customers and underpin future growth.”
Eyeing the big hitters
Michael Sullivan started BlueBet in 2015 having previously been the Chief Executive of William Hill and Sportingbet’s Australian subsidiaries.
Sullivan thinks that the merger will create more competition in the wagering space, as the company will battle it out with major brands like PointsBet, Ladbrokes, and Sportsbet.
Taylor Collison Equities Analyst Andrew Orbach estimates that the new combined entity accounts for about 3.5% of the country’s betting handle. He believes that BlueBet will sell its US operations following a strategic review.
