EGAMING REVIEW
Betcorp, the Australian parent company of sportsbook BetWWTS, has signed a deal to acquire the holding company of Cybersportsbook.com for US$6.15m. The firm has agreed to buy Sinsational from the Antigua-based Tarter brothers, who set up the firm in 1999.
Neither of the brothers will receive any cash as part of the all share deal, although US$2.5m in cash will be used to pay off outstanding debts at Sinsational.
Ron Tarter will also be retained as a consultant for the first year for a fee ofUS$150,000, and all issued shares will be subject to a twelve-month lock-in.
Betcorp said the acquisition of the recreational-focused Cybersportsbook will be earnings-enhancing for the firm and it would be “rapidly assimilated” into BetWWTS.
Cybersportsbook is highly ranked on Google, but it is believed its future operations will be carried out under the WWTS brand.
Betcorp said the deal would add over 9,000 new active clients to its database and would add more than US$7m gross profit for the 2005 financial year on a pro rata basis.
It also said it will consider further acquisitions during the year as it seeks to grow its recreational player base in an effort to boost margins.
Gross margin for the last financial year at BetWWTS was down to 2.8%, which is well below average for the sector.
