Summary
- PointsBet has once more declined Betr's offer to acquire the company.
- Betr attempted an all-stock takeover off the market following several unsuccessful proposals.
- PointsBet has outlined its complete set of concerns regarding Betr's business and proposal, suggesting that shareholders might prefer to accept MIXI's offer instead.
The ongoing situation with PointsBet, Australian betting giant Betr, and Japanese tech and gaming company MIXI persists as PointsBet's Board of Directors has once more turned down an unsolicited takeover offer from the betting operator.
PointsBet’s Board remains of the same mind – Betr’s bid is inferior
Betr has been attempting to acquire PointsBet and is engaged in a bidding war with MIXI, which PointsBet generally views as a better option. The most recent offer from Betr consists of 3.81 Betr shares for each PointsBet share. In response to this conditional off-market all-stock takeover, the Board of Directors labeled Betr's proposal as materially inferior compared to MIXI's offer. MIXI is offering AU$1.20 per PointsBet share. PointsBet has consistently rejected Betr's attempts to secure ownership of the company. Concerns from PointsBet's Board of Directors include Betr's business model and what they perceive as a lack of a firm commitment to the proposal, which requires shareholder approval. Earlier, shareholders voted against Betr’s bid, but there was controversy because some of the largest Betr backers were not counted in the vote. Additionally, any takeover by Betr would need approval from the Ontario gaming regulator, which has already approved the deal between MIXI and PointsBet. PointsBet’s Board also disputed Betr’s assessment of the company’s value in its latest proposal, stating, The PointsBet Board does not accept Betr’s characterization of the value of the Unsolicited Betr Scrip Offer. The Board further noted that the value of the all-stock bid presents uncertain benefits to current shareholders. They explained that the value could fluctuate over time and is expected to be lower than MIXI's offer due to the low liquidity of Betr’s shares on the Australian Stock Exchange.
Numerous concerns cited with Betr’s business model
The Board of Directors delved into the reasons why accepting Betr's bid would not be in the company's best interest. One major concern is that Betr relies heavily on a volatile VIP customer base, which is considered less valuable. In contrast, PointsBet has been expanding its offerings to appeal to a broader audience of bettors. It was noted that in January 2025, more than 50% of Betr’s net wins came from just 20 customers, raising doubts about the sustainability of Betr’s business model and making its margins unpredictable. Additionally, there is concern over Betr's heavy focus on racing, which accounts for 85% of its net wins. This lack of diversification poses a risk. Consequently, the PointsBet Directors unanimously recommend that shareholders approve the MIXI Takeover Offer, as long as no better proposal emerges, according to a statement from the Board of Directors.
