BetMakers Technology Group Ltd (ASX: BET) (BetMakers or the Company) today announces that its subsidiary, BetMakers MTS, LLC (BetMakers LLC), has acquired intellectual property and software (together the IP) from Protocol Zone Private Limited (Protocol Zone), a specialist developer of wagering software.
The intellectual property acquired from Protocol Zone includes; digital tote technology, API data feeds, proprietary trading and ratings models, amongst other tools, which will all form part of the new GTX software that BetMakers expects to release in FY25.
GTX will provide BetMakers’ international ADW and tote wagering customers with a new tote wagering platform that is expected to deliver enhanced performance and a greater user experience. GTX is expected to lower BetMakers’ cloud and infrastructure costs relating to its ADW platforms in the US and other jurisdictions of which there are currently ~20+ customers.
Importantly, GTX’s modern architecture and module-based application will allow for the deployment of sports betting, daily fantasy and iGaming products for customers looking to upgrade their existing racing tote only offerings. GTX is also expected to be integrated with BetMakers fixed odds managed trading service as well as the Racelab ProFORM betting prompts.
In consideration for the IP, BetMakers LLC will pay Protocol Zone AUD$1.5m (Purchase Price), which will be paid in two tranches:
1. An upfront payment of $200,000 to be satisfied as follows:
a) $100,000 in cash by BetMakers LLC upon certain BetMakers products going live (but no later than 7 April 2025); and
b) the issue of fully paid ordinary shares in the Company to Protocol Zone (or its nominee) to the value of $100,000 (Shares). The number of Shares to be issued to Protocol Zone (or its nominee) shall be determined on the basis of a deemed issue price per Share equal to the higher of:
i. 12 cents; and
ii. the share price calculated based on the volume-weighted average price of the Company’s shares on the ASX over the 30 day trading period preceding the date that the Shares are issued (which is to be determined by the Company but is to be no later than 7 April 2025) with a 5% discount applied.
2. The balance of the Purchase Price, being $1.3 million in cash is to be paid out of a percentage of increased net revenues derived from the GTX digital platform and related products to which the IP will be applied which shall be notified to Protocol Zone and paid via monthly instalments. BetMakers LLC can also elect at its discretion to pay the $1.3 million or any portion owing on the Purchase Price as a lump sum at any time prior to the Sunset Date (being 5 years from the date of the agreement, 6 February 2030).
Protocol Zone Managing Director, Kartik Modi, has also agreed to contract to BetMakers exclusively for an extended period of 3 years acting as BetMakers’ Country manager in India where he will oversee operations in India along with exploring opportunities in the Asia region.
An Appendix 3B will be lodged separately today in relation to the agreement to issue the Shares.
Karl Begg VP Technology, Global Tote commented: “We have been working with the team at Protocol Zone for 18 months now and have found them to be extremely efficient with a great domain knowledge across wagering and horse racing.
We are excited to be finalising this deal as we get ready to release our new upgraded Tote, Reporting and Digital product suite into the market, called GTX. We believe that the new offering will be a game changer across our tote business and we are confident it will be well received by the broader market and our existing customer base once launched.”
Komal Modi, CEO of Protocol Zone added: “Today marks a significant milestone in Protocol Zone’s journey as we announce the acquisition of our intellectual property and software by BetMakers. This partnership represents more than just a business transaction, it’s a testament to the innovation, dedication, and expertise our team has demonstrated in developing cutting-edge wagering technology over many years and we look forward to continuing this journey as part of BetMakers.”
