Australia’s Betr Loses Major Backer as News Corp. Dumps Shares
Posted on: October 9, 2023, 07:47h.
Last updated on: October 9, 2023, 07:47h.
In recent months, News Corp. has been distancing itself from Australia’s Betr, including the departure of two of its executives from Betr’s board. The reasons behind the move have now been revealed, with the Australian Financial Review disclosing that News Corp. has divested its shares in the gambling startup.
Betr, which secured a reported AUD70-million (US$44.52 million) investment from News Corp., TGW led by former BetEasy chief executive Matthew Tripp, and Las Vegas firm Tekkorp, was established less than a year ago. The initial plan was to leverage News Corp.’s media assets to promote the startup, but that seems to have gone sideways.
This week, Betr Chairman Matthew Tripp expressed gratitude for News Corp.’s “initial and ongoing support.” However, he clarified that the Murdoch family-run company is no longer an investor, and it apparently hasn’t been for several months.
High Risk, Low Reward
Although News Corp. no longer holds a financial stake in Betr, it will continue to feature advertising of the sports betting platform in its mastheads. This will include several prominent publications like the Australian Financial Review.
Following the resignation of News Corp. senior executives Mark Reinke and Peter Blunden in March, Betr is actively seeking new board members to fill those voids. The exits came a month after News Corp sold its shares in the company, although no announcement had been made at the time.
News Corp has apparently been consistently losing money and blames Betr for much of it. A recent financial report showed losses of US$33 million to affiliates, some of which were directly linked to its involvement with Betr.
The announcement follows closely the retirement of Rupert Murdoch, the billionaire media mogul who has led the News Corp. empire since its inception. However, there has been no confirmation that the sale of the Betr shares is linked to his departure.
Betr Losing Gamble
Betr entered the gambling scene with huge dreams and backing that it expected to carry it to the top of the charts in no time. However, from the start, it has dealt with issues stemming from poor executive decisions that threaten to collapse the company.
A false start in betting on the Melbourne Cup horse race last year left Betr having to make massive payouts to bettors. It offered 100-to-1 odds on each horse, repeating the odds on several big events, but never expected the reception from bettors it received.
The sportsbook owes AUD40 million (US$25.54 million) to bettors for the fiasco, and still hasn’t been able to cover its debts. It had to finalize all payments by October 6, but has apparently failed to comply.
What happens next isn’t clear – there’s a chance Betr could lose its license. The company has previously said it would be willing to consider a sale, either partial or complete, to the right buyer, but if it’s working on a deal, it remains silent.
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Source: casino.org
