BetMakers has executed a definitive asset purchase agreement for the acquisition of Las Vegas Dissemination Company (LVDC).
Still subject to regulatory approvals, BetMakers has assured that key discussions with regulators and stakeholders are “well progressed”, with the completion of the deal expected to come sometime in the first half of next year.
LVDC’s business model includes the servicing of Nevada’s gaming ecosystem with race information, OTB processing and common-pool wagering – all fed directly into sports bars, taverns, sportsbooks, racebooks and online wagering platforms.
Through the acquisition, BetMakers will obtain access to LVDC’s major US casino operators and Nevada wagering customers, delivering its proprietary modular technology suite and digital wagering solutions and in doing so – establishing a strategic foothold in Nevada.
BetMakers management expects around $4.5m in revenue generated from the acquisition, with Adjusted EBITDA to break-even by the end of year one.
Jake Henson, CEO of BetMakers, commented: “Nevada is one of the most recognisable wagering markets in the world, yet digital adoption of horse racing is still in its infancy, so it represents one of the largest blue-sky opportunities in the US market.
“LVDC provides not only market access, but access at scale through the most respected casino groups in the country, including Caesars Entertainment, MGM Resorts, Wynn, Sands and SouthPoint.
“This acquisition gives BetMakers a launchpad to bring world-class digital wagering experiences to Nevada customers and accelerate our US growth strategy.”
Big year for BetMakers
With the completion of the acquisition, BetMakers will mark a major milestone in its global expansion strategy. Already a big year for the ASX-listed company, the LVDC announcement follows the firm securing of a three-year contract with PENN Entertainment for the distribution of racing content.
Over in Australia, BetMakers’ partnership with CrownResorts has led to the launch of CrownBet, an online gambling brand set to take advantage of the long-term prospects of the betting market down under.
BetMakers is also planning to soon announce the full-scale commercial launch of the Monmouthbets digital tote wagering platform for customers in Oregon.