“BlueBet has invested heavily in its technology, and I’m excited about what this transaction means for customers of both companies.”

BlueBet’s share price has fallen by more than 80 percent since it launched on the ASX in 2021. The company has been hit hard by the industry’s maturing, increased taxes, and an increased cost base.

Ord Minnett and Gilbert + Tobin advised BlueBet, while Betr used Arnold Bloch Leibler and Barrenjoey.

Sullivan will remain executive chairman until January 2025, with Tripp to assume the role of chairman from that date. Menz will become chief executive of the new business, while BlueBet chief Bill Richmond will become chief operating officer.

BlueBet also announced a $20 million equity raising at 21¢ a share to fund the transaction costs and growth of the merged business.

Taylor Collison’s Andrew Orbach said the merger was “the worst kept secret in wagering history” following the news.

He pointed out that BlueBet’s wagering app download market share has been hovering at about 3 per cent for the past 12 months, while Betr’s peaked at about 50 per cent following its infamous 100-to-1 inducement odds offer, before settling at about 1 per cent to 2 per cent.

Orbach estimates the combined entity is responsible for about 3.5 per cent of wagering turnover and expects the new company to sell off BlueBet’s US business.

“Focus will likely be on Australian operations. Strategic review to be conducted on US operations. It is TC’s view that this asset will likely be up for sale given slow progress it has made and the way US market is playing out,” he said.

“Buckle up. Matt Tripp getting the old band back together one more time with right-hand man Andrew Menz on lead vocals. First time market has had a chance to be a shareholder of Matt Tripp’s after being a private operator for 20 years.”

Betr has attempted to enter into deals with a string of other companies over the past year to improve its technology, including PointsBet.

The company launched in 2022 as a consortium between News Corp, LA-based Tekkorp and founder Tripp’s investor vehicle TGW, which planned to leverage News Corp’s swath of media assets. It’s believed Tekkorp was not allowed to remain in the consortium after being unable to fund its launch obligations, while News Corp– which injected $75 million into Betr – formally severed ties with the business last year, leaving Tripp and his investors as sole owners.

To draw customers in, Betr launched with the 100-to-1 odds offer on a string of local and international sporting events including the 2022 Melbourne Cup, the football World Cup and the AFL grand final. The inducement ended with the business paying $40 million to customers who backed the Penrith Panthers to take home the 2023 NRL grand final.

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