BET Discussion 2022

[astrogirl10]

I just had to check if your figure was for all of gambling or just on the ponies and it seems that its very close to that for just the racing.

I don't think anyone on the BetR side would be going ahead if the plan wasn't to be bigger than TAB. I saw they are doing $9.5B in digital wagering.

I wonder if any of the fund manager researchers have thought about the numbers you posted above Reg? I doubt it. And thats just Australia!

I just had to check if your figure was for all of gambling or just on the ponies and it seems that its very close to that for just the racing.

I don't think anyone on the BetR side would be going ahead if the plan wasn't to be bigger than TAB. I saw they are doing $9.5B in digital wagering.

I wonder if any of the fund manager researchers have thought about the numbers you posted above Reg? I doubt it. And thats just Australia!

Looks like the revenue is capped at $313 over 10 years.

"The maximum revenue that may be earned under the contract is $313m over approximately 10 years after the go live date, plus the Launch Development and Platform Establishment Fees payable before the go live date (expected to be approx. $5m). This does not constitute management’s forecast of revenue. As the venture is a new business, and in line with ASIC guidance, management does not have a reasonable basis to provide any financial forecasts"

 

[Lattelarry]

Looks like the revenue is capped at $313 over 10 years.

"The maximum revenue that may be earned under the contract is $313m over approximately 10 years after the go live date, plus the Launch Development and Platform Establishment Fees payable before the go live date (expected to be approx. $5m). This does not constitute management’s forecast of revenue. As the venture is a new business, and in line with ASIC guidance, management does not have a reasonable basis to provide any financial forecasts"

Yep good find - still very good $
I haven't had a chance to read it all yet - but at a glance I saw:
The terms, detailed below, include the potential to earn revenue of more than $300m with minimum revenues for BetMakers of ~$80 million2 , over the initial 10-year contract period.
Probably would have been clearer if they just said there that it was a max of $313M.

 

[Lattelarry]

What does anyone make of this:
After an independent expert evaluated the Agreement as satisfying the criteria for a ‘Strategic
Deal’, the 35 million Class A Performance Rights have vested. Tripp has agreed to increase the
escrow arrangement to 100% on the Class A Performance Rights (and any shares issued on
conversion) for a period of 3 years in return for consideration of $15 million.
I don't get why they need to pay $15M for this?

 

[Masteri]

Just a quick thought
The current market cap is about 600m. So with this announcement alone projecting over 50% of market cap in revenue over 10 years.
Let alone cash at bank.
And we still waiting on last quarter earnings update.
I think we will see a very strong rerate on this stock once market has digested it

 

[Lattelarry]

……so basically we will be earning approx $31M a year over the next 10 years from this 1 new bookmaker just in Aus & NZ…..sounds good to me!!!!……..bring on the rest of the world

Establishment Fee	$2,000,000
	Dev & Service Fee	Annual Fee	Annual Total
	inc 2% CPI	inc 10% 1st 8 yrs & 5% last 2 yrs
Yr1	$7,500,000	$20,000,000	$27,500,000
Yr2	$7,650,000	$22,000,000	$29,650,000
Yr3	$7,803,000	$24,200,000	$32,003,000
Yr4	$7,959,060	$26,620,000	$34,579,060
Yr5	$8,118,241	$29,282,000	$37,400,241
Yr6	$8,280,606	$32,210,200	$40,490,806
Yr7	$8,446,218	$35,431,220	$43,877,438
Yr8	$8,615,143	$38,974,342	$47,589,485
Yr9	$8,787,445	$40,923,059	$49,710,504
Yr10	$8,963,194	$42,969,212	$51,932,406
Total	$82,122,907	$312,610,033	$394,732,941

Doesn't the maximum include the Dev and Service Fee?
It looks to me the maximum is the $313M + Launch costs of $5M

 

[Lattelarry]

above $.80 close

 

[Lattelarry]

you had to mention it didn’t you…..crossing your fingers doesn’t help!!

I'm thinking maybe when NYC wakes up there might be some over there who want to get on board tomorrow morning anyway.

Lots of selling at the close - wonder if that was shorters still trying or profit takers

 

[Just Westy]

My focus has been on a serious personal issue lately so I missed the ann when it dropped, actually a mate rang me to pass on the news.

This looks like a good deal and just adds more revenue and prestige to the company which is a good thing.

At some point the shorts will sort themselves out especially if the qtly is good followed by FO kicking off.

cheers

 

[Ibetfixed]

What does anyone make of this:
After an independent expert evaluated the Agreement as satisfying the criteria for a ‘Strategic
Deal’, the 35 million Class A Performance Rights have vested. Tripp has agreed to increase the
escrow arrangement to 100% on the Class A Performance Rights (and any shares issued on
conversion) for a period of 3 years in return for consideration of $15 million.
I don't get why they need to pay $15M for this?

Yes … $15 mill seems a lot to pay for forcing him to hold the 100% of the 35mill shares for 3 years … that is paying him more than 50% of what the shares are currently worth .. crazy… and he still will own the 35mill shares .

Maybe he is grumpy that the additional 32mill shares he was going to get if he does a deal that increases revenue by 100% is unlikely to happen now by his cut off date of Feb 2023.

Ie looks like the $15mill they are paying him is a loophole to make him feel better about not getting all of the 67mill shares that were on the table for deals??

 

[Kotaredrew]

Haven’t dropped in for a while boys- don’t mind stalking HC, just to keep up appearances, nice to drop in here.
Nice news today and hoping Shorts feel a little bit reamed tonight.
Just hoping May is the start of big things- because Fixed Odds is crucial to burning the shorts and finally starting a run for Bet.
Cashed up- $100mil in bank, already good revenue, today’s news big for revenue, then expansion in the US- All going to plan will be well north of here by June!
Good luck to all- great to just here the positives snd not having the crap one liner from tossers such FatChina, etc

 

[This is Anfield]

We have been waiting for a announcement like this for a little bit. As i understand it we get 300 million over 10 years for the Aus/NZ operations, sits well with our Sportech etc already locked in. The business is growing nicely. These blokes would consider this a practice run for the U.S. I would assume that we then re negotiate when they launch over there. We are moving along nicely on a few fronts at the minute and am happy to hold long term.

 

[comin2getme]

Yes … $15 mill seems a lot to pay for forcing him to hold the 100% of the 35mill shares for 3 years … that is paying him more than 50% of what the shares are currently worth .. crazy… and he still will own the 35mill shares .

Maybe he is grumpy that the additional 32mill shares he was going to get if he does a deal that increases revenue by 100% is unlikely to happen now by his cut off date of Feb 2023.

Ie looks like the $15mill they are paying him is a loophole to make him feel better about not getting all of the 67mill shares that were on the table for deals??

Ive been thinking about that $15 mil all arvo... your points are a possibility. The one thing that i go back to is : this deal wouldnt have happened without Tripp & Betmakers management do what it takes to get things done & I'm sitting here doing nothing, hoping my BET stock goes up... Deal is done, more revenue coming in which is the most important thing, another brick in the BET wall, more opportunities in the near future.

 

[Masteri]

• BetMakers selected as the exclusive technology and services provider in Australia and New Zealand to new wagering venture

“While this deal is focused on the Australian market, we feel this model will play an important part of our international expansion.”

I’m interested in everyone’s views on these two statements.
I’m sure newscorp won’t be content on just the Australian market.
So do we read into these statements that any revenue from outside Australia would be over and above the 300 million and importantly
NOT CAPPED ?

 

[Kotaredrew]

Granny even poked her head into the Bet HC forum tonight- alive and kicking- first time in a while!

 

[Ibetfixed]

….another point is that the “Transformational“ deal that Tripp was working on was TAB……now that didn’t eventuate so the next step was to start from scratch with News Corp and Tekkorp and put together a “Strategic” deal………maybe the $15M to escrow the 100% of the performance rights for the strategic deal is to compensate him for the work done trying to pull off the TAB deal………….and I think I’m ok with that!

Agree .. not unhappy with the $15mill .. BET have the cash … Tripp would have been pushing BET as the only choice for the technology side of the deal … which is a deal that will be good for shareholders .

Anyone got any thoughts re potential BET further revenue if the Newscorp/Tripp new consortium ends up getting the Victorian TAB licence that is up for grabs ? Ie if the BET deal is capped at $31mill a year revenue … would there be zero further benefit to BET by a TAB licence deal ?

 

[Lattelarry]

Granny even poked her head into the Bet HC forum tonight- alive and kicking- first time in a while!

Why did you think I was a shorter? Surely I wouldn't be here if I was!

 

[Lattelarry]

The only thing you’re short on Larry is…………..money to buy more BET shares

Very true!

 

[Blockhead]

There’s rumours around that ASIC are looking into BET trading activity, we can only hope hey.
Cheers H

 

[Lattelarry]

There’s rumours around that ASIC are looking into BET trading activity, we can only hope hey.
Cheers H

Going off previous discussions (not BET related) with a friend who works there, I wouldn't expect much.
Also so long as they aren't naked shorting I'm not sure what there is to investigate. They are just using their large funds to dump more shares than there are buyers. We really need to get a new funds buying in. I'd hope Nicholas Chan is talking to fund managers - preferably in the US and getting them interested in the Betmakers story.

 

[Slowlearner87]

Hi All, I watched the webinar today and it was made clear their focus is nailing their first Tier 1 contract (NDA over next 4 months) which if successful can be used as leverage into more lucrative contracts with stronger commercial terms. This along with fixed odds launching May 7 and managing their existing commitments was their priority. They didn’t give too much away but the clearly focused on global reach and picking the right businesses to engage with “opportunities with compelling cases”. When queried on “shorting” TB wasn’t drawn into it despite the angst it’s causing shareholders. He simply said they can’t control it and remain focused on the things they can i.e growing the business. Look after this business and the SP will look after itself in the fullness of time was the essence of his position on the issue.
Duration was was approx 30mins. Interestingly, they still don’t have final licensing issued to begin fixed odds transactions but TB was not concerned. They are ready to take first bet, everything ready to go and it was described as a formality. Expect we’ll get announcement in coming days/ week before next Friday.
The macros appear to be playing into the borrowed stock holders hands atm but hopefully we see them exit in few months (there is a lot to cover!) as revenue numbers with high GP are reported and instos get back onboard. Further mentioned by MD was the recession proof nature of the business model.
GLTAH