Tabcorp announced that it has agreed to make a strategic investment worth AU$33 million in Dabble Sports, a socialised online betting platform.
The investment, which will be subject to customary regulatory conditions, including the official approval of the Northern Territory Racing Commission, involves a 20% equity interest calculated on the overall number of shares that would be outstanding in case all potential shares were issued upon Dabble Sports’ convertible securities. Through the deal, Dabble Sports will be able to appoint a director to its board, with the appointment also being subjected to probity approval.
The Australian gambling company Tabcorp revealed that the investment will provide the group with exposure to the innovative product capability and strength that Dabble Sports has in the segment involving younger customer audiences, with companies aimed at exploring various opportunities to create win-win innovations and generate growth for both Tabcorp and Dabble.
The CEO and Managing Director of Tabcorp, Adam Rytenskild, explained that the company was under a transformation, with a clear strategy and ambition to expand its share in the digital market. Mr Rytenskild further described Dabble Sports as one of the most unique and innovative betting brands, so an investment made by Tabcorp in the operator would perfectly fit its transformation agenda. The Australian gambling giant’s stake in Dabble would provide it with exposure to innovative product capability, as well as to a younger customer base.
Tabcorp’s TAB Application Launched before the Announcement of the Company’s Investment in Dabble Sports
Tabcorp’s investment in Dabble Sports comes at a time when the new TAB App is now live, as initially planned. The company’s CEO shared that the launch of the application had had an immediate effect on consumers, delivering an 11% increase in weekly active users in comparison to their number six weeks before the application launch.
Dabble Sports was established in 2020, with the company currently having over 150,000 customers. In the June 2022 quarter, it reported an annualised revenue worth AU$47 million. Currently, the company is very popular among younger people, with younger audiences representing more than 80% of the operator’s customer base.
The AU$33-million investment of Tabcorp in Dabble Sports was confirmed by the latter company’s chief executive officer, Tom Rundle. He explained that everyone in the company was excited with the new energy and direction that would be given by Tabcorp that would help the operator mark an even bigger growth.
Mr Rundle noted that Tabcorp and its TAB brand was considered a synonym for punting in Australia, so the partnership of the two companies would make them complement each other, so that Dabble Sports is able to continue its expansion to an even greater number of customers, providing them with excellent social betting experience.
- Author
Olivia Cole
