BetMakers’ Las Vegas Push Raises Questions on US Market Risks and Integration

Strong Financial Turnaround

BetMakers Technology Group Ltd (ASX, BET) has kicked off FY26 with a striking financial performance, reporting a 361% increase in adjusted EBITDA to $2.4 million for the first quarter ended 30 September 2025. This marks a significant $3.4 million positive swing compared to the prior corresponding period, underscoring the success of the company’s transformation efforts completed in FY25.

Revenue growth was equally impressive, rising 77% on a normalized basis to $22.1 million, excluding legacy customer impacts. The company also expanded its gross margin to 64.7%, up from 57.8% a year earlier, driven by improved product mix and operational efficiencies. Cost discipline remained a priority, with operating expenses reduced by $1.4 million year-on-year.

Strategic Expansion into Las Vegas

Central to BetMakers’ growth strategy is the pending acquisition of the Las Vegas Dissemination Company (LVDC), which is progressing toward completion with regulatory approvals expected by mid-FY26. LVDC operates in Nevada’s racing wagering market, which BetMakers estimates to be less than 5% digitized; far below the US average of over 50%; highlighting a substantial untapped opportunity.

The acquisition is expected to contribute approximately AUD 4.5 million in annual revenue and is forecasted to break even within the first year. Integration of LVDC’s systems with BetMakers’ technology platform is anticipated to unlock operational efficiencies and revenue growth, positioning the company to modernize an under-digitized ecosystem.

Innovation and Partnerships Fuel Growth

BetMakers is also advancing its product innovation with the launch of AI-powered racing analytics products; Racelab Insights, Racelab Stories, and Racelab Live; designed to enhance wagering experiences through real-time data and predictive insights. These offerings aim to deepen operator engagement and provide a competitive edge in the global racing technology market.

Complementing this, the company has formed a strategic partnership with Betsy, an independent racing media outlet led by industry veterans Matt Welsh and Paul Tatnell. This collaboration seeks to integrate racing data with media content, expanding fan engagement and supporting BetMakers’ B2B network with authentic, data-driven journalism and analysis.

Leadership and Outlook

Executive Chair Matt Davey highlighted the company’s successful reset into a lean and profitable platform, emphasizing a shift from transformation to acceleration. CEO Jake Henson echoed this sentiment, focusing on scaling technology globally and capitalizing on new market opportunities, particularly in North America.

BetMakers maintains a strong cash position of AUD 28.7 million and has demonstrated disciplined cost management, including a 9% reduction in staff costs. The board has approved a salary increase for CEO Henson, reflecting confidence in leadership as the company pursues its growth trajectory.