Betr Entertainment has formally opened its all-share takeover offer for PointsBet, ramping up the pressure even more in a high-stakes bidding war with Japanese rival MIXI.

Under the new terms, investors would receive 4.219 Betr shares for each PointsBet share – valuing the deal at around AU$1.35 (£0.64) a share based on Betr’s recent $130m capital raise.

The Sydney-listed betting challenger confirmed shareholders can now accept its revised pitch, which closes on 22 September unless extended. 

Betr insists the deal offers superior value to MIXI’s $1.25 cash bid, pointing to expected annual cost savings of nearly $45m if the two operators combine. The company also highlighted, in addition to the $44.9m in expected cost savings, its board’s experience in building and selling wagering businesses. 

The firm’s history has been moulded by M&A since its foundation in 2022, most notably merging with BlueBet last year – it is now registered as BlueBet but trades as Betr. M&A continued this year with the acquisition of Northern Territory bookmaker TopSport. 

Betr likely views this experience beneficial, while also arguing that the merged group would become Australia’s only pure-play digital betting operator on the ASX, with potential for index inclusion.

Regulatory roadblocks

The fresh offer comes after a turbulent few weeks. PointsBet previously rejected Betr’s earlier approach, calling it “materially inferior” to MIXI’s cash proposal and questioning the sustainability of its VIP-heavy model.

The Takeovers Panel then intervened after shareholder complaints, ruling that Betr must amend parts of its bid, including disclosures around Chair Matthew Tripp’s voting rights. PointsBet also accused the operator of misleading investors with an $80m selective buyback.

Meanwhile, MIXI has steadily strengthened its hand, lifting its stake to more than 28% and securing approval for its bid from the Ontario regulator. Its “best and final” $1.25 per share cash offer – valuing PointsBet at around $418m – carries the backing of PointsBet’s board and offers rapid payment within 10 business days.

Investors now find themselves in the middle of a rare head-to-head contest, with both suitors outlining sharply different futures for PointsBet. The tussle underlines the value of the bookmaker’s licences, technology and customer base.

The Canadian question

Both bidders may have different ideas for PointsBet’s North American arm. Betr has flagged a $29.6m sale of PointsBet Canada to Hard Rock Digital, while MIXI is keeping its cards close to its chest but could hypothetically target future opportunities in Alberta’s upcoming market.

Whichever way the contest goes, the deal is being closely watched across the industry. 

There are a lot of factors at play in Australia’s crowded online betting sector, with investors weighing up sustainability, regulatory scrutiny and responsible gambling practices.

For PointsBet shareholders, the choice now lies between the certainty of MIXI’s cash and the growth promise – but greater risk – of Betr’s all-scrip play. 

Again though, PointsBet’s board remains adamant that MIXI’s offer is superior, evaluating things not just on a cash basis but also based on shared synergies and the compatibility of the two businesses.

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