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Betmakers Technology Group

BetMakers Technology Group - Managed Trading Services Delivering New Revenue Streams

31 Views18 May 2020 07:50
Issuer-paid
SUMMARY

BetMakers Technology Group (ASX:BET) is a B2B software services business focussed on servicing the wagering market and race operators globally. The company’s technology and systems are used by every racing authority in Australia and most of the major online bookmakers. BetMakers is not a gaming company, it is a technology company that is facilitating commercial opportunities for racing authorities, rights holders, and corporate bookmakers while providing an improved racing experience for punters. The company has forged three new transactions which we anticipate will significantly progress its Managed Trading Services joint venture with Tom Waterhouse. Two of Australia’s largest on-course bookmakers Rob Waterhouse and Mark Sampieri as well as international gaming company Pronet Gaming have engaged BetMakers to manage their online wagering presence, on terms which include fixed fee, turnover and profit share models. We anticipate that with racing still operating without on-course patrons, more of Australia’s ~90 on-course bookmakers will seek out BET’s online solution. We have included new estimates for conversion of on-course bookmakers to BET’s Managed Trading Services solution which provides a full turnkey 24/7 online racing platform with pricing and trading solutions. Our forecasts have also been adjusted to reflect our revised view that Tom Waterhouse’s 80,000 subscribers will open at least one new trading account with bookmakers in the next two years, adding to the revenue pool for BET. These changes have resulted in a significant upgrade to our FY21 and FY22 forecasts. Our DCF valuation has also increased to $0.39/share, fully diluted (previously $0.30/share).  In our view, there is also potential for this model to be adopted in the US racing market but have not incorporated into our forecasts.

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