Aussie-based BetMakers Technology Group announced they would continue to pour more money into product development and fixed-odds horse betting despite a negative adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal year 2023.
While some companies might pull back when investments don’t immediately hit the ground running, other companies understand patience is a virtue.
And so it is with Australian BetMakers Technology Group, who recently announced a negative adjusted EBITDA of $18 million for fiscal 2023 due to a $9.7 million investment in its fixed-odds betting development and its Next Gen technology platform. We should note that $4.5 million (7 million AUS) was dedicated strictly to fixed-odds betting.
However, rather than view it as a negative, the company is doubling down and committing another $9.7 million for fiscal year 2024.
Matt Davey, President and Executive Chairman of BetMakers, said, “Within our FY23 negative EBITDA result, it is important for our investors to understand that A$7 million was invested into fixed odds (horse betting), which we think is an incredible opportunity for our company and shareholders.”
What is Fixed Odds Betting?
Traditional parimutuel betting, a staple found at horse tracks throughout the United States, does not allow the bettor to lock in the odds at the time of the wager. Only when the race goes will the closing odds be known as they are predicated on the final distribution of bets.
Therefore, a bettor placing a wager on a horse that is 6-1 has no idea what those odds will be when the betting closes. If less money is wagered on that horse, then the odds might go up when the race goes off. Conversely, if more money is being wagered on that particular horse, then the odds may drop.
However, with the advent of fixed-odds racing, the bettor knows exactly what odds they will be getting the moment they make the bet, much like betting on a football game. The point spread may move one way or the other but whatever it was at the time of the bet is what it is and there’s no turning back.
MonmouthBets Goes Mobile
BetMakers, which has been running a fixed-odds retail shop at Monmouth Park in New Jersey over the last year, launched a mobile betting app specifically for fixed-odds at Monmouth in New Jersey in May and a handful of other tracks including Tampa Bay Downs in Florida, Canterbury Park in Minnesota, Delaware Park, and Emerald Downs in Washington.
“With last year’s retail offering setting the foundation, we are excited and honored to bring fixed-odds betting to horseplayers through our MonmouthBets digital platforms,” said Jake Henson, the CEO of BetMakers, “Fixed-odds betting will help to form a healthy betting ecosystem for horse racing in New Jersey and beyond, with the transformative potential to provide a massive benefit to the entire racing industry.”
And while the signs are positive, the progress has not been as swift as the company would have liked. “We are seeing other states move in that direction,” he told investors Wednesday. “Clearly, New Jersey is the market leader.”