Sportingbet, the parent company bookmaker Sportingbet Australia, has agreed to buy Australian online rival bookmaker Centrebet.
The deal, which values the global business of Sportingbet at $380 million, will be funded though a share placement offer and values Centrebet Australia at $2 per share.
Sportingbet said that the acquisition will establish Sportingbet as the “leading corporate betting provider” in Australia.
It will also give it the opportunity to improve its business mix between regulated and non-regulated income, and enlarge the amount of revenue it receives from regulated markets from 22% to 30%.
Sportingbet currently receives approximately 60% of its revenue from its European businesses and Sportingbet Australia contributes approximately 20% of total revenue.
Andrew McIver, Sportingbet chief executive, said: “This acquisition is a major step forward as it accelerates the group’s strategy of increasing its exposure to regulated markets and of geographic diversification. We will become the leading corporate bookmaker in the fast-growing Australian market.”
The deal also places Australia in the unenviable position of having all four of its biggest online bookmakers: Sportingbet Australia, Centrebet Australia, Sportsbet and Iasbet; owned by European companies.
Sportsbet and Iasbet are owned by European betting giant Paddy Power.
The only licensed betting exchange in Australia is, and always has been, owned by a European company.
Of the major online bookmakers, Readbet, Sports Alive and the Tabcorp owned Luxbet remain in Australian hands.
The news also closely follows the announcement that European betting firm Bet365 have applied for an Australian bookmakers license in the Northern Territory.