Australian online gambling firm PointsBet has made some startling claims in a filing with the Australian Stock Exchange, claiming that over half of the January profits of rival Betr came from just 20 customers. The operator secured access to Betr’s financials and operations after the two parties agreed to due diligence in discussions over a takeover deal.
rejected Betr’s “highly conditional” scrip-based offer
PointsBet is resisting a hostile takeover attempt from Betr. The company’s board of directors rejected Betr’s “highly conditional” scrip-based offer on Wednesday and recommended that shareholders go for the AU$402m (US$266m) cash bid from Japanese firm Mixi. At least 50.1% of shareholders will need to approve the bid, which is valid until August 25.
PointsBet investors have concerns about the overreliance on this small segment of VIP players, claiming this is a volatile way to do business with more regulatory and compliance risks. Betr also has a big skew towards racing, but the two sports betting platforms have a significant overlap in customers nontheless.
