BetMakers’ Cost Cuts and Acquisition Plans Signal Market Expansion Risks
BetMakers Technology Group kicks off FY26 with a strong financial turnaround and strategic advances, including a promising acquisition and digital wagering expansion in Nevada.
- Positive adjusted EBITDA of $2.4 million in Q1 FY26
- Revenue growth of 77% year-on-year excluding legacy customer
- Gross margin expanded to 64.7%, up from 57.8%
- Operating expenses cut by 10.8% compared to prior year quarter
- LVDC acquisition progressing toward mid-FY26 completion
Strong Financial Turnaround
BetMakers Technology Group Limited has reported a robust start to its 2026 financial year, posting a positive adjusted EBITDA of $2.4 million for the first quarter. This marks a significant $3.4 million improvement compared to the same period last year, when the company recorded a loss. Revenue surged by 77% year-on-year, excluding the impact of a legacy customer no longer contributing to the top line, underscoring the company’s accelerating growth trajectory.
Gross margin expanded notably to 64.7%, up from 57.8% in Q1 FY25, reflecting the benefits of BetMakers’ technology-led, high-margin business model. The company also demonstrated disciplined cost management, reducing operating expenses by 10.8%, or $1.4 million, compared to the prior year quarter. These financial improvements highlight the effectiveness of BetMakers’ ongoing transformation strategy focused on operational efficiency and scalability.
Strategic Acquisition on Track
BetMakers is advancing its acquisition of Las Vegas Digital Corporation (LVDC), with the long-form sale and purchase agreement expected to be signed in the second quarter of FY26. Regulatory approvals and third-party consents are progressing well, supporting a mid-FY26 completion timeline. The acquisition is anticipated to add approximately $4.5 million in annual revenue, with the business expected to be at least EBITDA break-even in its first year under BetMakers’ ownership.
This deal is a key pillar in BetMakers’ strategy to expand its footprint in the lucrative US racing wagering market, particularly in Nevada, where digital wagering penetration remains below 5%, compared to over 50% nationally. The acquisition will enable BetMakers to leverage its technology and operational expertise to unlock this untapped potential.
Innovation and Market Expansion
BetMakers continues to innovate with its proprietary products such as Racelab, which delivers real-time racing insights and enhanced user experiences. The company is embedding artificial intelligence and machine learning across its platform to improve pricing, risk management, and customer engagement. These technological advancements are designed to drive growth and maintain BetMakers’ leadership in racing technology solutions.
In Nevada, BetMakers is preparing to launch its GTX Digital Platform, featuring white-label apps and embedded wallet solutions, currently undergoing state regulatory testing. The company is also addressing content gaps by integrating global racing data and modern bet types, aiming to revitalize the digital wagering experience for key partners including Caesars, MGM, Wynn, and Boyd. Commercial discussions for rollout in 2026 are actively underway.
Outlook
With a strong financial foundation, a strategic acquisition nearing completion, and innovative product rollouts on the horizon, BetMakers is well positioned to capitalize on growth opportunities in both domestic and international racing markets. The company’s focus on cost efficiency, technology integration, and market expansion signals a confident trajectory for FY26 and beyond.
Bottom Line?
BetMakers’ Q1 momentum and strategic moves set the stage for a transformative year ahead.
Questions in the middle?
- Will the LVDC acquisition close on schedule and deliver the expected synergies?
- How quickly can BetMakers scale digital wagering in Nevada’s underpenetrated market?
- What impact will AI-driven innovations have on BetMakers’ competitive positioning?
