Australia’s largest gambling company is seeking to continue growing. After a successful takeover of competitor TopSport, BlueBet now spies PointsBet for acquisition. However, the company rejected a takeover offer back in February, but it appears that the CEO of BlueBet is confident of getting a deal concluded.
According to the BlueBet CEO, Andrew Menz, shareholders have been “overwhelmingly positive” after going back to the table. It’ll have to be, as Japanese tech firm MIXI has offered an all-cash deal of AUD $353 million ($222,495,900), which was eyed by shareholders.
BlueBet is now in a race to ensure that it can secure the buyout. It’s current reasonings include benefits for those shareholders, including a 45% premium. In a press release last month, the company said that its buyout would offer AUD $1.28 per share, over MIXI’s cash buyout, which would be $1.06 if the deal went through.
BlueBet also expects to produce $40 million annually through what it’s calling a “highly synergistic” alliance.
Its acquisition spree is going undeterred right now, with BlueBet announcing that it now has a market share of 10-15%. With a 5% share itself, buying out PointsBet would put BlueBet at around 20% of Australia’s gambling market.
BlueBet could be another monopoly in the making
According to an analysis report from December, a company of “PointBet’s size” has never been “sustainably profitable”. While a purchase would presumably be best for the companies, it calls into question Australia’s battle with gambling, conglomerates, and monopolies.
In June 2024, Assistant Minister for Competition, Charities and Treasury Dr Andrew Leigh published an opinion piece detailing his concerns for Australia’s markets. In it, he points out that “About 1,400 mergers occur annually, but the competition watchdog only reviews about 300.”
Australia typically has weaker merger laws for companies, especially within the tech sector. However, these laws also appear to be leaking over into the iGaming and gambling industry as BlueBet attempts to acquire another company.
The runway is clear for BlueBet’s offer; it just ultimately depends on whether the shareholders accept it.
