Tabcorp and BetMakers end informal takeover discussions without a formal offer

Talks between Tabcorp Holdings Limited and BetMakers Technology Group over a potential takeover have ended without a formal offer, after preliminary discussions that began in December.

The Australian Financial Review reported that Tabcorp chief executive Gillon McLachlan and BetMakers chair Matt Davey engaged in high-level discussions shortly before Christmas. The talks were described as informal. Barrenjoey Capital Partners advised Tabcorp on the potential transaction, internally codenamed “Project Wattle,” while BetMakers was referred to as “Banksia.”

BetMakers confirmed on Wednesday that it had been approached by Tabcorp but said the discussions did not progress.

“BetMakers confirms that it was approached by Tabcorp and that preliminary and informal discussions have taken place regarding a potential change of control transaction,” the company said. “While those discussions were at an early stage and highlighted opportunities for BetMakers’ wagering technology products, no formal offer was received, and discussions have ceased."

“BetMakers maintains an ongoing commercial relationship with Tabcorp, supplying wagering technology and content distribution services in support of Tabcorp’s racing and media operations.”

People familiar with the matter said Tabcorp’s interest centered on integrating BetMakers’ technology platform to address legacy systems and support its technology program. The deal was also viewed as a way to generate operational synergies and expand Tabcorp’s global B2B and international activities.

BetMakers has a market capitalization of AUD 230 million ($163 million). Analysts cited by the Australian Financial Review said such a transaction would be unlikely to strain Tabcorp’s balance sheet, given recent debt reduction.

As of June 30, Tabcorp’s net debt to EBITDA stood at 1.6x, below management’s ceiling of 2.5x. The company reported AUD 609 million in net debt and AUD 803 million in undrawn facilities and unrestricted cash. In November, it raised AUD 300 million through a 5.5-year note.

It is understood that Tabcorp considered submitting a formal proposal before BetMakers’ upcoming results or waiting until after the earnings release, depending on share price performance. No price or structure was agreed upon.

The discussions followed a series of key developments for BetMakers. In early 2026, it completed the acquisition of Las Vegas Dissemination Company, a Nevada-based gaming solutions supplier. The company also extended its U.S.-facing agreement with Penn Entertainment for three years, effective in January, continuing a relationship that began in 2022. In Australia, BetMakers agreed to provide its wagering technology stack to CrownBet, owned by Betfair Australia.

Tabcorp’s approach came after its fiscal 2025 results. Revenue rose 11.8% year-on-year to AU$2.61 billion (US$1.86 billion). Net profit was $36.6 million, compared with a $1.36 billion loss in FY’24. McLachlan, who became CEO in August 2024, described the company as “fitter” and “improved.”

However, regulatory issues remain in focus. This week, the Australian Communications and Media Authority ordered Tabcorp to pay $158,400 for accepting 426 online in-play bets across 32 tennis matches between February 2024 and June 2025, contrary to the Interactive Gambling Act 2001.

Tabcorp said the breaches were due to systems and communication issues involving a third-party provider. It voided the bets and refunded stakes. It marks Tabcorp’s third breach related to in-play betting rules since 2021.

“The law is clear, and wagering services must have processes in place to prevent illegal in-play bets from being accepted,” ACMA member Carolyn Lidgerwood said. “While we understand that most wagering operators rely on third-party providers to close betting on sporting events, they cannot outsource their legal responsibilities.”