When it comes to bookmaking and sportsbetting, no man in Australia has been more successful in the online-era than businessman Matt Tripp who has confirmed his next wagering venture with a $25 million investment into small cap bookmaking tech company BetMakers (ASX: BET).
Tripp is best known as the founder of SportsBet which he built up to be Australia’s top online sportsbetting site before selling the business to Paddy Power in 2010. He then went on to do a similar thing with BetEasy where he took over before selling his stake to TSG in 2016.
Constantly looking for new opportunities where he has been restricted by non-compete clauses after each of his previous sales, Tripp had long been linked to an acquisition of Tabcorp’s (ASX: TAH) wagering business which has still not been ruled out.
“BetMakers has cemented itself with a compelling proposition in the global racing wagering market. They have built a formidable team with a highly trusted brand and established a global footprint with a large customer base,” said Tripp.
“I am delighted to invest into the Company and take on a role to assist in growing the business at scale globally. I see clear opportunities to support that growth through inorganic and organic deals both in Australia and internationally.”
Tripp’s $25m investment is just part of a wider capital raise conducted by BetMakers which received a total of $70m in bids from institutional investors at $0.70 per share, led by Canaccord Genuity as Lead Manager, Financial Advisor and Bookrunner on the raise.
As part of his enquiry investment, Tripp will own around 5% of the BetMakers which was trading with a market cap around $600m prior to this capital raise. Once finalised, the Company will have a cash balance around $110m which will assist BetMakers with their plans to expand the business into the United States.
Unlike Tripp’s previous ventures with SportsBet and BetEasy, BetMakers is not an actual bookmaker. Instead, their business supplies tech that allows bookmakers to launch their own platform, website and app without BetMakers having to take on licensing or compliance responsibilities.
“We are thrilled to have secured Matt Tripp’s backing, both in the form of a significant investment in the Company and also as a key advisor on strategic and transformational deals that he will now pursue,” said BetMakers CEO, Todd Buckingham.
“Matt has a proven track record over a brilliant career in the online wagering industry and his support for BetMakers is a great vote of confidence in our Company.”
News of Tripp’s investment in BetMakers has sent BET shares soaring to open at $1.00 which represented a 15.3% rise on their previous $0.867 close.