BetMakers Technology Group (ASX: BET) has reported strong digital momentum in the second quarter of FY26 while securing favourable new commercial terms under a renewed three-year agreement with Penn Entertainment.
The company launched eight Apollo customers in Q2 FY26 across domestic and international markets, marking continued uptake of its digital wagering products, with a further eight customers contracted and scheduled for deployment during the remainder of FY26.
Preparations are continuing for the full-scale commercial launch of Monmouthbets, a digital tote platform built on BetMakers’ GTX technology and licensed by the Oregon Racing Commission.
BetMakers said the platform showcases its US-facing capabilities and believes these developments will contribute to an improving EBITDA trajectory through the second half of FY26 and into FY27.
New Penn Entertainment Agreement
BetMakers signed a new three-year distribution agreement with Penn Entertainment effective from 1 January 2026, with an option for a further one-year extension.
The deal continues BetMakers’ role as the exclusive international distributor of Penn’s racing content for fixed odds, derivative bets, and exchange wagering.
Penn’s minimum annual fee to BetMakers has been reduced to US$2.5 million, alongside a US$0.2m promotional spend on Penn racetracks.
Penn will receive a revenue share on earnings generated above the minimum guarantee, while BetMakers will continue distributing a broader suite of Penn racing content.
BetMakers said the reduced minimum guarantee improves gross margin and reflects revenue performance in FY25, which exceeded the new minimum threshold.
Continued Strong Returns
Chief executive officer Jake Henson said Penn Entertainment remains a valued and important customer whose content continues to generate strong returns.
Mr Henson called the updated agreement a “positive step for both parties” that strengthens the ongoing partnership supporting the growth of Penn’s racing portfolio.
Penn vice-president of racing Chris McErlean said BetMakers’ technology and international reach have been instrumental in expanding Penn’s racing footprint and delivering value to stakeholders.
BetMakers expects the favourable revised commercial terms to increase EBITDA by about A$1.2m per year over the contract term.
