The takeover battle for wagering operator PointsBet has seen a significant development, with the company’s board today declaring the proposed offer from Betr Entertainment to be “superior” to the rival bid from MIXI Australia. This assessment positions Betr with a key advantage in the ongoing process.

In a statement released today, May 12, 2025, PointsBet announced it had reached the decision that the Betr proposal is superior, having consulted with external advisers. Following this determination, PointsBet has proposed that mutual due diligence be undertaken with Betr. This due diligence process is planned to be phased, with an initial focus on evaluating the value of potential synergies and the scrip component of Betr’s offer. In the context of Australian takeovers, scrip refers to an offer where shares in the acquiring company are offered partly or wholly in place of cash to the shareholders of the target company.

Betr originally tabled its bid in February 2025, prior to its rebrand from BlueBet. The offer was valued at AUS$360 million (approximately US$231 million) and comprised a cash pool of between $240 million and $260 million, alongside a scrip consideration worth $100 million to $120 million. Betr also identified potential annual synergies from a combined entity of at least $40 million. PointsBet advised its shareholders that they do not need to take any action at this time and that further updates would be issued as appropriate.

Implications for MIXI and Board’s Recommendation

Despite the declaration that Betr’s proposal is “superior,” PointsBet’s formal position regarding the rival bid from MIXI Australia currently remains unchanged. An independent expert is still in the process of reviewing the MIXI offer, which was also proposed in February 2025. The MIXI proposal, structured as a scheme arrangement, suggested the transfer of 100% of PointsBet’s shareholding to the Australian arm of Japanese digital entertainment and sports group, MIXI Inc. The terms of the MIXI offer would see PointsBet shareholders receive a cash consideration of $1.06 per share, representing a premium of 27.7% to PointsBet’s closing price on February 25 (the day before the offer was tabled), valuing the total offer at approximately $353 million.

While the PointsBet board has deemed the Betr proposal “superior,” it is currently continuing to unanimously recommend that PointsBet shareholders vote in favour of the MIXI offer. This recommendation is made with the crucial qualification, as stated by the company, that it is “in the absence of a superior proposal [from Betr] and subject to the independent expert continuing to conclude that the MIXI scheme is in the best interests of PointsBet shareholders.” This indicates that the board’s final recommendation could shift if the Betr proposal is finalised and continues to be assessed as superior and in the shareholders’ best interests. MIXI’s financial strength is noted, with its December 2024 balance sheet showing over JP¥100 billion, or AUD1 billion, in cash and deposits.

Potential Restructuring Under a Betr Deal

Should PointsBet ultimately opt for the Betr proposal and a deal is completed, it could potentially lead to a partial restructuring or breakup of the PointsBet business. Sources familiar with the proposal have suggested that Betr might look to divest certain assets, such as PointsBet’s Canada-facing operations, to focus primarily on the operator’s core Australian business.

Context for this possibility includes the fact that Betr reportedly received a non-binding proposal from Hard Rock Digital in April 2025 regarding the acquisition of PointsBet Canada. Furthermore, reports emerged last week (early May 2025) indicating that Hard Rock Digital has applied for an online gambling license in Ontario, potentially in anticipation of a deal being agreed upon for the Canadian unit. While any sale of PointsBet Canada would be contingent on Betr successfully acquiring the entire PointsBet business, these reports, coupled with the PointsBet board’s declaration of the Betr proposal as “superior,” suggest that the momentum in the takeover race has shifted in Betr’s favour. The path forward will depend on the outcome of the proposed due diligence and the conditions for changing the board’s formal recommendation being met.