Sports betting company Betmakers has put its hoof into the United States market by signing two-year access and content agreements with bet365 giving it access to horse racing punters in New Jersey and Colorado.
Under the agreements, bet365 will be licensed by BetMakers to offer fixed odds on thoroughbred horse racing and distribute content to bet365 customers in New Jersey covering both thoroughbred and harness racing,
Bet365 will pay BetMakers a ‘market access fee’ based on a percentage of all fixed odds on bets placed in New Jersey on all racing events it offers to customers and a content fee based on a percentage of all fixed odds on bets placed in New Jersey and Colorado on applicable BetMakers’ Global Racing Network content.
The agreement makes provision for Bet365 to seek BetMakers’ approval to offer fixed odds wagering on third party global content to its New Jersey customers from many rights holders globally.
Bet365 will be required to pay BetMakers the market access fee in respect of online fixed odds wagering in New Jersey on all thoroughbred racing content, regardless of whether that content is provided by BetMakers or a third party.
Betmakers said the contract made Bet365 the first major operator to enter New Jersey’s fixed odds horse racing market, therefore potential revenues were yet to be established.
However, BetMakers expect these contracts to be significant to the growth of the company and says it may encourage other operators to enter into similar arrangements with BetMakers to further develop the sports betting market on horses within the United States.
BetMakers’ Chief ExecutiveOfficer, Jake Henson, commented on the agreements:
“We are very excited to be launching fixed odds betting on thoroughbreds in partnership with a leading sportsbook in the US. This is a significant milestone for BetMakers and aligns with our strategy for fixed odds betting on thoroughbreds in the US.
“The sports betting market in the US is starting to mature and the interest from operators in horse racing as a product is expected to become even stronger. The high frequency of horse racing can deliver high engagement and high margin returns to operators.
“We believe the opportunity for both BetMakers and the racing industry more broadly to be significant in the long term.”
Betmakers shares were down almost 5% midday priced at 10 cents.