Tabcorp sells eBet for US$41.5m

The unit has been bought by Venue Digital Technology Pty Ltd, a company founded by former Tabcorp executive Frank Makryllos.

Australia.- Tabcorp has sold its eBet loyalty and tracking systems business to Venue Digital Technology Pty Ltd for AU$62m (US$41.5m). The buyer is led by former Tabcorp and Tatts Group executive Frank Makryllos.

Regulators still have to approve the sale, but Tabcorp hopes to finalise the transaction early next year. Should the agreement be terminated due to the buyer failing to obtain approvals or complete the sale, Tabcorp will be entitled to a break fee of AU$3m (US$2m), which may increase to AU$10m (US$6.7m).

EBet serves around 525 gaming properties in NSW and Victoria. In its financial report for the fiscal year 2022, it reported EBITDA (earnings before interest, taxes, depreciation, and amortisation) of AU$4.4m (US$2.92m). In the second half of the year, it recorded EBITDA of AU$3.2m (US$2.13m).

Earlier this month, Tabcorp’s gaming services company, MAX, received a Tasmanian Monitoring Operator Licence from regulators to monitor electronic gaming machines in Tasmanian Pubs and Clubs from July 2023.

Under the terms of the agreement, Tabcorp will contribute AU$1m to Gambling Harm Research in Tasmania and hire Tasmanians to execute the project.