Tekkorp Capital, News Corp Australiaand BetEasyThe CEO of has entered into an alliance to launch its business in Australia under the domain of NTD Pty Limited.
The joint venture, which saw the investment fund and strategic advisory firm advise on the transaction, is expected to launch in the second half of 2022 and be led by Matt TripFounder of Sportsbet AUS.
Both Chairman and CEO of Tekkorp Capital, Matt Daveyand president, Robin Chabrawill join the board of directors of the new betting entity, in which the company said it would “significantly invest”, in addition to providing advice on the recent transaction.
“The new venture is a significant investment from Tekkorp Capital and I’m very excited,” Davey said. “We’re sure it’s a good bet for Tekkorp Capital.”
Besides, BetMakers Technology was selected as the exclusive platform and service provider for the new venture. The betting technology solution provider said it is expected to receive multiple revenue streams over the 10-year term of its contract.
The terms of the deal will include the ability to generate over $300 million in revenue, with minimum revenue for BetMakers of $80 million, over the term of the contract.
Under the terms of the agreement, BetMakers will receive a platform set-up fee of $2 million and a launch development fee of $500,000, with a minimum development and service fee of $7.5 million. dollars paid once the business was launched and increasing with the CPI on each anniversary of the launch.
This would represent a minimum base fee – before IPC considerations – of $75 million on the 10-year contract, while the revenue-sharing agreement currently stands at 25%, reduced from 1% to each anniversary of the launch date.
Finally, the revenue-sharing agreement comes with an annual cap of $20 million – increasing by 10% per year for the first eight years and 5% per year for the other two – which equates to a single digit total revenue of $313 million over 10 years.
Todd BuckinghamCEO of BetMakers, said: “We are delighted to partner with the consortium to enter this space under our proven business model.
“We believe this partnership cements the company as a leading provider of B2B platforms and software for the betting industry.
“This agreement will allow the company to demonstrate that we are a viable route for large-scale operators who want to enter markets quickly and efficiently, allowing them to focus their resources on marketing strategies.
“While this agreement focuses on the Australian market, we believe this model will play an important role in our international expansion.”
Chhabra, M&A advisor in the digital games industry, as well as founding CEO of FOX beta joint venture between FOX Corporation and The star group, concluded: “The Australian online sports betting market is booming, but ripe for innovation and competition. This consortium has the combination of skills, experience and capital to become a major player.