Betting giant Tabcorp Holdings Limited has agreed to sell eBet for $62 million. The deal is expected to go through by the end of the year or as soon as regulators approve the transaction.
eBet is a supplier of loyalty systems to gaming venues in NSW and Victoria. When the deal is completed, Digital Technology Pty Ltd, a company spearheaded by Frank Makryllos, will become the new owner of the tracking systems provider. Makryllos is a former Tabcorp Holdings executive.
Tabcorp expects to get a pre-tax profit of $39 million from the transaction which is a pretty good deal considering that, in FY2022, eBet ‘s EBIDTA was $4.4 million.
20-Year Tasmania License
Tabcorp has also been awarded a Tasmania license to monitor EGMs (Electronic Gaming Machines) for a period of 20 years starting from 1 July 2023. Tabcorp got the license via Max Regulatory Services. The subsidiary will pay $2 million in licensing fees to the government of Tasmania and will also transfer $1 million to the Community Support Fund, as per license terms.
Tabcorp’s CEO Adam Rytenskild said that the transactions they made allowed the betting operator to simplify its Gaming Services business as it moved towards “an integrity services model.”
Rytenskild was pleased to have concluded the deals quickly and in line with Tabcorp’s new strategic direction which is to grow not just the Wagering & Media arm, but also the Gaming Services business.