Secures Rights for On-Course Fixed Odds in New Jersey
- BetMakers signs 5-year agreement to manage Fixed Odds terminals and kiosks
- BetMakers to provide its Managed Trading Services to Monmouth Park racetrack
- Agreement includes all-year trading on race days and non-race days
- New deal follows previous announcement of exclusive Fixed Odds rights in New Jersey
BetMakers, through the Company's wholly owned subsidiary, BetMakers DNA Pty Ltd ("BDNA"), has signed an Agreement with Darby Development LLC, the operator of Monmouth Park, and New Jersey Thoroughbred Horsemen Association for a 5-year deal that is subject to BDNA obtaining regulatory approvals from the New Jersey Division of Gaming Enforcement and the New Jersey Racing Commission ("Agreement").
Under terms of the Agreement, which are confidential and commercially sensitive, BetMakers has the rights to manage on-course Fixed Odds betting on Monmouth Park's race days as well as all other nonrace days that the venue is open year-round. The material terms of the Agreement are annexed to this announcement.
Whilst revenues for FY21 are unknown due to current market factors and the launch date of Fixed Odds betting, the Company expects to generate revenues in excess of $US1 million per year from FY22 under the Agreement. Accordingly, the Board of BetMakers believes that the Agreement will have a material impact on the Company's revenues.
The Agreement for on-course Fixed Odds rights follows the Company's previous announcement, on 5th February 2020, that BetMakers had secured an exclusive 10-year agreement with New Jersey Thoroughbred Horsemen Association and Darby Development LLC to deliver and manage Fixed Odds horse racing into New Jersey via online bookmakers licenced in that state.
BetMakers CEO Todd Buckingham said: "This new deal gives BetMakers the rights to offer Fixed Odds betting using on-course terminals and manage wagering through our Managed Trading Services division. We believe this will be the first time in the U.S. that on-course patrons will be able to bet Fixed Odds on horse racing via betting terminals and at kiosk windows. We believe this will provide Monmouth Park patrons with a truly unique betting experience, and one that will be the future of betting on horse racing in the U.S. market. This new Agreement shows the full breadth of BetMakers' services that we can offer to operators both online and in a retail environment. It is a solution that can be replicated to allow expansion of these services to other tracks and betting venues, including casinos throughout the U.S."
Dennis Drazin, CEO Monmouth Park, commented: "We have always been forward thinking in the way we approach our business in terms of commercial outcomes and customer experiences, and bringing Fixed Odds betting to Monmouth Park for our patrons is another exciting concept to fulfil both of these aims. We believe that under this deal with BetMakers we will bring more people into our venues, which we can benefit from not only by adding an extra revenue stream via Fixed Odds, but also create more engagement to bring new customers to racing."
As part of the Agreement, BetMakers must supply and maintain (at BetMakers' cost) Fixed Odds betting terminals and kiosks for cash betting that will be managed from a central risk management system developed by BetMakers. The Company expects the initial fit out infrastructure cost to be approximately $250,000 for the Monmouth Park venue.
Following a recent announcement by the State of New Jersey Governor to re-open horse racing, Monmouth Park is scheduled to begin racing again July 3. Its biggest race, the $US1 million Haskell Stakes, is set for July 18.
New Jersey has been one of the pioneers for Fixed Odds sports betting in the U.S., with latest sports betting annual turnover reported at more than $US4.5bn. The Company believes this will be the first time Fixed Odds betting on horse racing will be offered legally anywhere in the U.S.
Mr Buckingham added: "There are two key factors behind our optimism on Fixed Odds betting on horse racing in the U.S. Firstly, we know that U.S. punters have shown an appetite for Fixed Odds on other sports through their $US4.5billion annual turnover on sports in New Jersey alone, and secondly we have seen the strong trend in Australia that has seen Fixed Odds betting become the dominant type of betting option preferred by punters."
"This new deal gives us the opportunity to build the perfect model at Monmouth Park to modernise the offering on horse racing through Fixed Odds betting, which we believe will be adopted throughout other racetracks in the U.S. market."
To view the material terms of the Agreement, please visit:
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (FRA:T07) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
Betmakers Technology Group Ltd