Betr is showing no signs of backing down in its mission to buy PointsBet, increasing its offer to $1.35 per share in an attempt to outplay rival suitor MIXI Australia.

The revised proposal sees betr offering 4.219 of its own shares for each PointsBet share, which is up from the original 3.81. 

The improved bid gives PointsBet a higher paper valuation than MIXI’s all-cash offer of $1.20 per share, which values the company at approximately $402m.

Betr’s move follows a firm rejection from the PointsBet board last week, which labelled its original offer “materially inferior” to MIXI’s and advised shareholders to stick with the cash. 

As of 30 July, MIXI Australia has quietly increased its stake in PointsBet to around 25% –  surpassing Betr’s ownership. Betr, which held a 19.6% share, initially seemed to have the upper hand in the competition to take over the Australia and Ontario-licensed sportsbook and online casino.

The board has not yet updated its position following the increased bid but has urged shareholders to wait for the release of a formal target’s statement before making any decision. The board has firmly been in favour of MIXI’s takeover offer since the Japanese tech firm’s first bid back in February.

While betr claims that its revised offer delivers more value, PointsBet remains sceptical. The company previously dismissed betr’s valuations and suggested the offer was only worth around $1.03 per share when measured against betr’s 20-day VWAP as of mid-July. 

The company also raised concerns around the lack of a cash component, warning shareholders about the volatility of betr’s stock, its limited liquidity and the higher risk profile of its business model.

Government steps in

Following a formal complaint from the operator, Australia’s Takeovers Panel has now stepped in to stop betr from moving forward with its latest takeover attempt.

PointsBet accused Betr of ‘misleading shareholders’ in its previous bid, highlighting a selective AUSD$80m share buy-back only offered to those who accepted the deal.

It’s also been reported that Betr Chairman Matthew Tripp may have failed to fully disclose the extent of his and his associates’ voting power, raising concerns over transparency.

The panel responded quickly, issuing an interim order blocking Betr from sending out its bidder’s statement. Just hours later, Betr filed a revised bid in an apparent move to bypass the restriction.

A broader strategic shift

This takeover push occurs against the backdrop of a broader strategic shift in Australia’s betting market, with rapid consolidation, stricter regulations and a renewed focus on ‘mobile-first’ experiences.

Betr, which already owns just under 20% of PointsBet, is positioning itself as a growth-oriented alternative to the more established, cash-flush MIXI. 

MIXI, which is part of Japanese tech and media group MIXI Inc, currently holds a 9.15% stake in PointsBet and has already won board endorsement for its bid. 

It also has regulatory approval in Canada, where PointsBet has a presence and may expand into Alberta’s emerging betting market.

However, betr has confirmed that it would sell off PointsBet Canada to Hard Rock Digital if its efforts to acquire the firm pay off. It is unclear what MIXI”s intentions with PointsBet’s Canadian business would be at this time.