BetMakers’ non-binding offer makes it a three-way race for TAB,following cash bid of $3.5 billion from rivalLadbrokes’ owner Entain andprivate equity group Apollo, which also offered an extra $500 million to include Tabcorp’s poker machine servicing business.
The $11 billion ASX-listed Tabcorp has come under pressure from shareholders to sell or separate the wagering division from its booming lotteries arm,as it continues losing market share to online players like Sportsbet.
Mr Tripp - who invested $25 million in BetMakers in February and joined it as an adviser tasked with finding major deals for the $1 billion company - said he could return TAB to market share growth by rebuilding its back-end technology from the ground up.
“TAB have been inhibited by some of their technical deficiencies in the past. There’s an opportunity to revamp the technology of Tabcorp to create better agility[and] to be able to compete against the likes of Sportsbet,Ladbrokes and others,” he said,adding BetMakers could provide some of the new platforms needed.
Mr Tripp also envisaged launching a second brand to target younger customers who are more interesting in betting on sports rather than TAB’s traditional focus on racing.
“There has been an opportunity missed by not focusing on that demographic as much as they could have or should have,” he said.