Board favors financial certainty over speculative value amid concerns over Betr’s customer base and business model
Strategic Decision: PointsBet Board Backs Mixi Over Betr
PointsBet’s Board has unanimously rejected an off-market all-scrip offer from Betr, choosing instead to endorse and open a rival takeover bid from Japan’s Mixi Group to shareholders. Betr had proposed a share-swap deal offering 3.81 Betr shares for every 1 PointsBet share—an offer that was theoretically valued at up to AUD $1.86 per share, depending on Betr’s future share price performance.
In contrast, Mixi’s offer is a straightforward all-cash bid valued at AUD $1.20 per share, which the PointsBet Board described as “more favourable” due to its certainty and liquidity. The move signals the company’s preference for a deal that provides immediate and tangible value to shareholders over a speculative equity-based proposition tied to volatile market factors.
Why Betr’s Offer Was Rejected
PointsBet didn’t merely reject Betr’s offer based on financial mechanics—it also took aim at Betr’s business fundamentals, raising significant concerns about long-term sustainability, compliance, and portfolio synergy.
Key concerns raised:
High-risk VIP concentration: PointsBet disclosed that 50% of Betr’s January 2025 net win came from just 20 customers, reflecting a high dependency on VIPs—often linked to elevated regulatory risks and volatile revenues.
Overexposure to horse racing: Betr’s portfolio is heavily skewed, with 85% of its net win stemming from horseracing, a vertical often subject to seasonal fluctuations and regulatory pressures.
Lack of customer differentiation: An internal analysis revealed that 65% of aggregate turnover and 61% of net win across both Betr and PointsBet came from customers holding accounts with both companies, highlighting low strategic synergy and potential cannibalisation rather than market expansion.
Mixi’s Growing Influence and Shareholder Backing
This isn’t Mixi’s first attempt to acquire PointsBet. In June, a shareholder vote in favor of Mixi’s takeover narrowly missed the 75% majority threshold needed for approval. However, since then, Mixi has acquired a 9.15% stake in PointsBet, reinforcing its commitment to the deal.
Now that the Mixi takeover offer has formally opened, the PointsBet Board is actively encouraging shareholders to accept the offer, touting the benefits of a clean exit, reliable capital infusion, and a partner with strong regional expertise in Asia-Pacific digital entertainment and gaming.
Broader Implications: A Crossroads for Australian iGaming
This tug-of-war over PointsBet represents more than just a business transaction—it reveals deeper trends in the betting sector:
Cash vs. equity acquisition models, where risk tolerance becomes a key differentiator.
Increasing regulatory scrutiny surrounding VIP-focused revenue models.
A shifting focus toward diversified product portfolios and measurable synergies in merger proposals.
With PointsBet’s rejection of Betr’s speculative approach and backing of Mixi’s grounded offer, the company has made a statement: in a complex and highly regulated market, certainty and long-term sustainability will trump aggressive expansion at any cost. The coming weeks will be pivotal, as shareholders weigh their options and decide the future trajectory of one of Australia’s most prominent digital betting operators.
