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As part of a foray into the Australian gambling market, digital investment firm Tekkorp Capital has partnered with software provider BetMakers to launch a new sports betting platform in the country.
BetMakers Technology Group is a global provider of real money gambling services which has been chosen to serve as the platform provider for the new endeavor. Tekkorp has declared that it would be investing a considerable sum of money into the platform, which will be launched in the coming months.
Matt Davey, founder of Tekkorp Capital and a veteran of the gaming business with more than 25 years of expertise, claimed that the new endeavor represents a “significant investment for Tekkorp Capital”.
Tekkorp has also recently gathered a strong team to guide the venture to success. Robin Chhabra, an M&A adviser in the online casino sector and founder and CEO of Fox Bet, will be one of the names joining the board of directors for the new platform.
Chabbra noted that the online gaming sector in Australia is ready for innovation because of the rapid growth that has occurred in recent years. He added that the new venture with Tekkorp had the optimal combination of resources, abilities and expertise to establish itself as a key player in the market.
BetMakers chief executive Todd Buckingham noted that the agreement would help the firm showcase its capability to enter new online casino markets, allowing operators to focus on marketing efforts. Buckingham added that, even if the primary market emphasis is on Australia, the platform has the prerequisites to go international.
Financial details revealed
In the announcement on the venture’s financials, the platform software will have a launch charge of AU$2 million. Development is expected to begin within six months, with a monthly charge of $500,000 to cover development costs from the date of signing to the official launch.
Subsequent yearly development and service charges will be at least AU$7.5 million, with the fees scaling based on revenue sharing beginning at 25 percent of net gaming income. Said fees will be reduced by 1% per year, and the maximum cap per year will be AU$20 million. It is anticipated that the cap would increase to $43 million over the course of ten years.
BetMakers is expected to generate around $313 million in revenue over the next ten years as a result of this agreement. The company's stock soared by 21% immediately following the announcement of the deal.
