News Corp has sold its stake in Australian gambling startup Betr after an initial investment of AU$70m (US$44m).
It's been under a year since Betr’s launch in October 2022 and News Corp has sold its shares in the company, which comes following Betr receiving an AU$210,000 fine from regulators in April.
Betr was issued with 14 separate infringement notices by Liquor and Gaming NSW for what the regulator said were “significant breaches of the law.”
This week, Betr Chairman Matthew Tripp said he was grateful for News Corp’s “initial and ongoing support” but that News Corp was no longer an investor, according to a report in the Australian Financial Review.
Reports state that Betr was backed by an AU$70m investment from News Corp when the company started.
When discussing the 100-1 offer that Betr is struggling to pay its customers, Liquor & Gaming NSW Executive Director Jane Lin said: “This company tried to attract a new customer base and establish a significant market share with promotions that we consider crossed the line, using inducements that had the potential to cause harm to the community.
“In many cases, such promotions can only be legally offered to betting account holders who, unlike the general public, have made a conscious decision to open an account and receive this information.”
Due to its 100-1 promotion last year, Betr will need to pay over AU$40m to its players.
News Corp lost money relating to its investment in Betr and posted in a recent annual financial report that its losses related to the company were AU$72m. Furthermore, News Corp Senior Executives Mark Reinke and Peter Blunden, who joined as part of the Betr Board, stepped down in March.
