PointsBet’s ongoing saga involving Australian betting giant Betr and Japanese tech and gaming company MIXI continues as the company’s Board of Directors has, once again, rejected an unsolicited takeover bid by the betting operator.
PointsBet’s Board remains of the same mind – Betr’s bid is inferior
Betr has been trying to buy out PointsBet and has been engaged in a bidding war against MIXI, which the company has generally considered to be the better option. The latest offer amounted to 3.81 Betr shares for every PointsBet share.
Commenting on the conditional off-market all-scrip takeover, the Board of Directors called it "materially inferior" to the offer put forward by MIXI. MIXI is offering a price of AU$1.20 per PointsBet share.
PointsBet has repeatedly struck down attempts by Betr to gain a foothold and secure ownership of the company. Among the concerns raised by PointsBet’s own Board of Directors have been such issues as Betr’s business model, and a lack of what they have described as a firm commitment to the proposal, which would require shareholder approval.
Previously, shareholders voted against Betr’s bid, although the processing company had failed to count some of the largest Betr backers, stirring another controversy. A Betr takeover, though, would also require clearance from the Ontario gaming regulator, which has already agreed to the deal between MIXI and PointsBet.
In a statement, PointsBet’s Board of Directors also disagreed with the calculation of the company’s value in the latest proposal:
"The PointsBet Board does not accept Betr’s characterisation of the value of the Unsolicited Betr Scrip Offer."
The Board of Directors also said that the value of the all-stock bid is of uncertain benefit to existing shareholders. In pure terms, the value will change in time, the company explained, and the realizable value is expected to be lower than what MIXI is offering, specifically citing the low liquidity of Betr’s shares on the Australian Stock Exchange.
Numerous concerns cited with Betr’s business model
The Board of Directors also went into further details of breaking down Betr’s business and why it would not be a good choice for the company to accept its bid. For one, Betr is said to have a much more volatile VIP-heavy customer base that is less valuable.
PointsBet has been diversifying its offer to include a wider audience of bettors, whereas Betr, the company insists, generated more than 50% of its net wins in January 2025 from only 20 customers.
This brings into question the long-term sustainability of Betr’s business model and makes margins less predictable. Another area of concern is the fact that Betr is heavily focused on racing, with 85% of all net wins derived from the sector.
"The PointsBet Directors unanimously recommend that PointsBet shareholders accept the MIXI Takeover Offer, in the absence of a superior proposal," the statement released by the Board of Directors concluded.
