BetMakers signs wagering technology deals with Waterhouse Group

BetMakers ASX BET technology deals Waterhouse Group Australia racing
BetMakers will provide data and technology for two significant new wagering products to be launched in partnership with the Waterhouse Group

Racing data and analytics supplier BetMakers Technology Group (ASX: BET) has signed commercial agreements to build and operate new wagering products with companies linked to Australian racing identity Tom Waterhouse.

BetMakers and its wholly-owned subsidiary BetMakers DNA Pty Ltd have agreed to provide technology, data and services for the newly-launched tomwaterhouse.com betting software app and the Waterhouse global pricing and trading desk.

The app has been designed to offer punters access to Australian bookmakers and is set to launch to 80,000 members by mid-2020.

It claims to deliver the best prices in the Australian wagering market from one place, while providing wagering operators with a low-cost customer acquisition platform.

The trading desk is a business-to-business Managed Trading Services solution designed for use by existing and potential wagering operators.

Users are assigned an outsourced Waterhouse team, powered by BetMakers technology, to manage day-to-day bookmaking across more than 250,000 races per year worldwide including pricing and trading services and minimum guaranteed returns.

Shared arrangement

Under the terms of the commercial agreements, BetMakers will receive revenues generated from the app and trading desk in a shared arrangement with Waterhouse Group.

The group’s venture capital arm Waterhouse VC will receive performance rights which will convert to options over shares in BetMakers.

The number of options issued on conversion of the rights will be calculated according to the amount of revenue the new products derive for BetMakers over a 24-month period.

Material impact

BetMakers chief executive officer Todd Buckingham said the agreements are likely to have a material positive financial impact on the business from 2021.

“[We have] made a considered decision to invest additional resources into our technology and team, including with respect to [these agreements] with the Waterhouse Group and other opportunities which have presented in the North American market,” he said.

“We strongly believe the opportunities for future growth justify our decision to make this investment now.”

Mr Buckingham confirmed the company’s $10 million revenue guidance for the 2020 financial year and said he expects to finish the year with a “materially-higher” annualised run rate.