PointsBet rejects Betr’s all-scrip offer, citing volatile VIP-heavy customer base
As one offer is rejected, the other has been (re)opened for acceptance.
Key points:
– PointsBet has unanimously rejected Betr’s off-market all-scrip offer
– Betr offered 3.81 shares for every 1 PointsBet share
– The Board is, once again, recommending shareholders to accept the Mixi takeover offer
The PointsBet Board has unanimously rejected Betr’s off-market all-scrip offer and has opened Mixi’s takeover offer to shareholders.
After months of increasingly large offers, PointsBet has decided against Betr’s offer, which has the potential to offer shareholders up to $1.86 per share, but on the assumption that stock prices would rise after the offer was accepted.
Mixi’s offer of $1.20 per share is an all-cash offer, which the Board finds more favourable.
As part of the rejection, PointsBet also explained why it was against Betr’s offer from the beginning.
According to PointsBet, Betr has a “less valuable and volatile VIP-heavy customer base,” with 50% of Betr’s net win in January 2025 coming from 20 customers.
Not only did this raise questions with long-term sustainability, but also compliance and regulation risks associated with heavy VIP play.
Betr’s business model was also heavily skewed towards horseracing, with 85% of its net win coming from these products.
Finally, the operator claimed that 65% of the aggregate turnover of Betr and PointsBet and 61% of the aggregate net win comes from customers who have an account on both Betr and PointsBet.
Good to know: When discussing this deal, Betr refers to the Australian-based bookies that previously merged with BlueBet, not the Miama-based Betr co-founded by Jake Paul
PointsBet found this portfolio and lack of customer synergy “unattractive.”
The Mixi takeover offer also opened for acceptance today, with Mixi Australia already holding 9.15% of PointsBet shares.
In June, PointsBet recounted an earlier vote that had accepted the Mixi takeover, which fell short of the requisite 75% majority, meaning the takeover was no longer approved.
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