The protracted battle for ownership of wagering operator PointsBet appears to have reached a decisive conclusion. PointsBet has formally and unanimously
The protracted battle for ownership of wagering operator PointsBet appears to have reached a decisive conclusion. PointsBet has formally and unanimously rejected a takeover proposal from Betr Entertainment, instead throwing its backing behind an improved offer from MIXI Australia.
For several months, Betr and MIXI have been vying to acquire PointsBet. However, in a statement detailing its decision today, June 20, 2025, PointsBet confirmed that an improved offer from MIXI, presented earlier in June, was deemed “superior” following its due diligence. MIXI’s latest takeover proposal is valued at AU$402 million (approximately US$261 million), a figure that significantly surpasses Betr’s rival offer.
Should the deal proceed, PointsBet shareholders will receive $1.20 for each share they hold in the company. This represents a 44.6% premium on the February 25 closing price of $0.83 and also improves upon MIXI’s previous $1.06 per share proposal, which had already been approved by the PointsBet board in February.
PointsBet has now entered into a bid implementation deed with MIXI, which sets out the specific terms of the offer. These include that any takeover would be subject to a 50.1% minimum acceptance from shareholders and regulatory approval in Ontario, Canada, which is PointsBet’s remaining international market after selling its US operations to Fanatics in April last year (2024). Last week, it was confirmed that Australia’s Foreign Investment Review Board had already approved the mooted takeover, fulfilling another key condition of the deal. PointsBet shareholders are scheduled to vote on the MIXI offer on June 25, and the company stated it will publish further updates as they become available.
At one point, Betr had been declared the frontrunner in the race to take control of PointsBet, with the PointsBet board announcing Betr’s proposal as “superior” in May. This assessment seemingly pushed MIXI into improving its own offer. However, just a few weeks later, Betr’s position has changed dramatically, with its offer now being formally rejected. PointsBet outlined several reasons for turning down Betr’s proposal, following its due diligence on the offer.
Firstly, the total value of the Betr offer ultimately fell short of MIXI’s improved bid, tabled earlier in June. Betr’s proposal, an all-scrip offer of 3.81 Betr shares for each PointsBet share (which Betr stated was valued at AU$1.22 based on a $0.32 Betr share price), was worth approximately $360 million, making it about $42 million less than the fresh MIXI offer. PointsBet also noted that based on Betr’s closing share price on June 19, its offer had an implied value of $1.086 per PointsBet share, which remains “materially below” the $1.20 in cash per share offered by MIXI. Betr had completed an oversubscribed offering of $130 million to support its proposal, intending to facilitate a selective buy-back of shares issued to PointsBet shareholders who accept the bid for a cash offer of $1.22 per share. The buyback was to be initially capped at $80 million but could rise to $200 million if Betr secured at least 90% of PointsBet shares. Betr’s proposal was also not subject to any minimum acceptance condition, only requiring approval from its own shareholders and the Australian Competition and Consumer Commission. Betr Chairman Matt Tripp had described the offer as a “compelling opportunity to consolidate” in the Australian wagering sector, highlighting flexibility and potential for “significant value enhancement” and over $40 million in material synergies under a 100% acquisition scenario.
However, PointsBet’s due diligence considered the longer-term implications of Betr’s proposal. The company concluded that the value of cost synergies identified by Betr were “materially overstated.” This assessment was due to the significant level of brand and digital investment that would have been required as part of the forward business plan under Betr’s proposal. PointsBet also noted concerns regarding high levels of customer crossover between PointsBet and Betr, as well as customer behaviour, indicating a risk of cannibalising its own revenue if a merger with Betr proceeded.
In addition, PointsBet flagged “significant integration and implementation challenges” with the Betr proposal. The company noted that Betr had assumed PointsBet’s Canadian business could have been seamlessly carved out, leading to large synergies being realised. However, PointsBet’s assessment was that this assumption would likely have further reduced the overall achievability of those projected synergies. PointsBet conveyed that “The board notes its own assessment of the value of the proposal differs materially to that of Betr.” It added that “The key reason for the difference in value is the calculations underpinning Betr’s value are reliant on a number of assumptions that PointsBet considers to be unrealistic.” Betr, previously known as BlueBet Holdings before rebranding, is yet to comment publicly on the decision.
The unanimous rejection of the Betr offer by the PointsBet board, in favour of MIXI’s improved all-cash bid, signals a clear direction for the company’s future ownership, pending shareholder approval and remaining regulatory clearances.
