News Corp quietly sold out of Betr after four months, despite $70m investment

“While they’re no longer on our register, we’re appreciative of News’ initial and ongoing support of Betr, and they remain an important partner of ours going forward,” he added. “We’re now in a position where we are focused on growth and getting to scale – with our eyes fixed firmly on M&A opportunities in a market that is becoming more challenging.”

Betr launched last October after more than four years of on-and-off discussions between Mr Tripp and News Corp Australia. It was unrelated to a decision by News Corp chairman and Fox Corp chief executive Lachlan Murdoch, to explore the betting market in the United States.

But multiple media and wagering sources, who required anonymity to speak freely, said the relationship between the two parties had soured quickly.

Gambling insiders took comments by News Corp’s chief financial officer Susan Panuccio in February – that she did not expect the multimillion-dollar equity loss caused by Betr to be “the run rate going forward” – as a sign of its view on the start-up. The industry has speculated since then that News Corp had walked away from the business.

Selling Betr to BetMakers an option

News Corp has remained silent on the matter despite repeated questioning and the exit of two senior executives – Peter Blunden and Mark Reinke – from the Betr board in March. Sources close to the two parties said the decision was a directive from News Corp’s headquarters in New York.

Documents filed with ASIC earlier this year show the only change to the share structure of Betr was an injection from Mr Tripp’s company, TGW, in February, which diluted News Corp’s 47 per cent stake.

The structure changed after Tekkorp, part of the consortium that launched Betr almost one year ago, walked away from the start-up two months after the launch. According to a Betr source, Tekkorp “was not allowed to remain in the consortium after being unable to fund their launch obligations”.

After News Corp sold out, Betr attempted to secure alternative funding to acquire the Australian business of rival wagering group PointsBet. When it was unable to secure funding, Betr looked at other options – new investors and the prospect of a sale.

One of the potential options was the sale of Betr to its technology provider, BetMakers, but those discussions ended more than a month ago. BetMakers’ executive chairman is Matt Davey, who is also the owner of Tekkorp.

Mr Tripp said in an interview last month that he still had plans to take part in mergers and acquisitions in the sector, claiming he had conducted a capital raise that allows Betr to “stay the course”.

Betr declined to provide details about who forms the consortium known as the Tripp Group or how much money was raised. It is unclear from the filings how much News Corp received for its shares.

Over $40m in payments finalised

News Corp, which owns The Australian and The Daily Telegraph, will continue its relationship with Betr as an advertising partner. As part of the launch, Betr received discounted rates to promote its platform on Foxtel.

The formal end of the relationship with News Corp means it will not provide more financing to Betr or assist it in meeting its obligations to customers.

Betr has finalised more than $40 million in payments to its customers, who took part in a 100-1 promotion last year and backed Panthers to win their third consecutive NRL Premiership last weekend.

The promotion, which led to a $210,000 fine from Liquor and Gaming NSW, put financial pressure on the wagering business. Betr last month attempted to reduce liabilities by offering Penrith backers the chance to take a $400 or $500 payout. The maximum payout on the bet was $1000.

“The $100-1 markets have given us strong momentum all year and provide a big boost for customers heading into spring,” Mr Tripp said, claiming the business is profitable. It is the largest payout in sports gambling history.