BETMAKERS TECHNOLOGY GROUP LTD
RESULTS FOR ANNOUNCEMENT TO THE MARKET
$’000
Revenues from ordinary activities
up
0.2%
to
95,203
Loss from ordinary activities after tax attributable to the owners of
BetMakers Technology Group Ltd
down
0.3%
to
(38,667)
Loss for the year attributable to the owners of BetMakers
Technology Group Ltd
down
0.3%
to
(38,667)
DIVIDENDS
There were no dividends paid, recommended or declared during the current financial period.
COMMENTS
The loss for the Group after providing for income tax amounted to $38,667,000 (30 June 2023: $38,781,000). This
includes a deferred tax asset movement of $20,130,000 (30 June 2023: $nil) and a share-based payments benefit of
$1,916,000 (30 June 2023: expense of $8,349,000).
Further information on the 'Review of operations' is detailed in the Directors' report and Chief Executive Officer's report
which is part of the Annual Report.
NET TANGIBLE ASSETS
Consolidated
2024
$’000
2023
$’000
Net assets
111,554
150,596
Less: Intangibles
(59,130)
(56,706)
Less: Right-of-use (ROU) assets
(2,887)
(4,331)
Add: Lease liabilities - current
1,556
1,401
Add: Lease liabilities - non-current
1,599
3,308
Net tangible assets
52,692
94,268
Number of shares
2024
2023
Number of ordinary shares on issue
965,114,395
943,541,600
REPORTING PERIOD CENTS
PREVIOUS PERIOD CENTS
Net tangible assets per ordinary security
5.46
9.99
APPENDIX 4E
Name of entity:
ABN:
Reporting period:
Previous period:
BetMakers Technology Group Ltd
21 164 521 395
PRELIMINARY FINAL REPORT
For the year ended 30 June 2024
For the year ended 30 June 2023
RESULTS FOR ANNOUNCEMENT TO THE MARKET UNDER ASX LISTING RULE 4.3A
For personal use only
BETMAKERS TECHNOLOGY GROUP LTD
CONTROL GAINED OVER ENTITIES
Not applicable.
LOSS OF CONTROL OVER ENTITIES
Not applicable.
DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES
Not applicable.
FOREIGN ENTITIES
Details of origin of accounting standards used in compiling the report:
Currently all accounting policies of the Group are consistent with those adopted by its ultimate holding company,
BetMakers Technology Group Ltd.
AUDIT QUALIFICATION OR REVIEW
Details of audit/review dispute or qualification, if any:
The financial statements have been audited and an unmodified opinion has been issued.
ATTACHMENTS
Details of attachments (if any):
The Annual Report of BetMakers Technology Group Ltd for the year ended 30 June 2024 is attached.
SIGNED
As authorised by the Board of Directors:
_______________________________
Matt Davey
Chairman
Date: 30 August 2024
APPENDIX 4E
PRELIMINARY FINAL REPORT
CONTINUED
For personal use only
FY24 FULL-YEAR RESULTS
ANNUAL
REPORT
BetMakers Technology Group Ltd.
DATED
30 June 2024
ABN 21 164 521 395
© 2024 BetMakers Technology Group Ltd. All Rights Reserved.
For personal use only
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BETMAKERS TECHNOLOGY GROUP LTD
OPERATIONAL HIGHLIGHTS
6
CEO'S LETTER
7
DIRECTORS' REPORT
9
REMUNERATION REPORT
22
AUDITOR'S INDEPENDENCE DECLARATION
35
FINANCIAL STATEMENTS
37
Statement of Profit or Loss and Other Comprehensive Income
38
Statement of Financial Position
39
Statement of Changes in Equity
40
Statement of Cash Flows
41
NOTES TO THE FINANCIAL STATEMENTS
42
DIRECTORS' DECLARATION
86
INDEPENDENT AUDITOR'S REVIEW REPORT
87
SHAREHOLDER INFORMATION
95
CORPORATE DIRECTORY
99
TABLE OF
CONTENTS
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BETMAKERS TECHNOLOGY GROUP LTD
BetMakers delivers world leading B2B technology solutions for tote
and fixed odds betting on racing.
BetMakers Technology Group (ASX:BET) is a leading international provider of
B2B technology products with a global footprint that spans the world’s major
racing and betting markets.
Our technology and service solutions enhance betting on racing at critical
points along the life cycle for fixed odds and pari-mutuel wagering, unlocking
new revenue streams, expanding markets, and enhancing user experience.
RACING
ENHANCED.
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OPERATIONAL HIGHLIGHTS
OPERATIONAL
HIGHLIGHTS
In FY24 BetMakers realised material benefits from
a disciplined execution of its turnaround strategy
whilst still pursuing new product and commercial
initiatives.
SUCCESSFUL EXECUTION OF
TURNAROUND STRATEGY
A focus on lowering the cost base, exiting unprofitable
contracts, restructuring operations and rebuilding
our technology platform produced improvements in
operating expenses and adjusted EBITDA.
TECHNOLOGY INVESTMENT SETS THE
STAGE FOR EFFICIENCY AND GROWTH
Next Gen, a transformational revamp of BetMakers'
core technology platform, rolls out in Q1 FY25 to
offer BetMakers customers an enhanced end user
experience, a suite of new services and features,
updated Form and Content from RACELAB, and tools
for customer acquisition and retention, whilst also
reducing costs and streamlining operations.
CLIENT RETENTION, ACQUISITION
AND GROWTH INITIATIVES
FY24 Commercial
and growth
initiatives focused
on products
and regions
with the
capacity to deliver high margin and sustainable long
term value. We signed or renewed contracts with
29 operators in FY24, leveraging investments in
technology to expand into new markets and customer
segments and leading to key deals with Bet365, PA
Betting Services, Kambi, GiG and others.
A HIGHLY STRATEGIC ACQUISITION
The acquisition of RACELAB adds leading proprietary
models, race form, preview, and statistics technology
to the BetMakers ecosystem, offers potential to
further expand services in the harness and greyhound
form and preview racing sectors, and brings new
customers to BetMakers.
A particularly synergistic addition, the integration
of RACELAB operations into our existing global
infrastructure is driving new revenues via existing
sales channels and boosting the strategic profiles
of both RACELAB ProFORM™ and BetMakers ODDS
ENGINE™ technologies.
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BETMAKERS TECHNOLOGY GROUP LTD
$88.8M
$65.3M
-$7.2M
97%
FY24 REVENUE
(EX CUSTOMER LOSS)1
↑ +1.0% vs pcp
↓ -26% vs pcp
↑ +74% vs pcp
OPERATING EXPENSES3
CONTRACTED REVENUE2
FY24 ADJUSTED EBITDA
1. Excludes $6.4m of revenue related to
betr customer loss announced on 11
April 2024. Reported FY24 Revenue
was $95.2m.
2. Contracted Revenue refers to
revenues derived from customers
who had contracts in place prior to the
beginning of the financial year.
3. Excludes capitalised costs of $6.3m
associated with Next Gen. There were
no capitalised staff costs in FY23
Operational Highlights
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CEO'S LETTER
CEO'S
LETTER
Dear Shareholders,
I am pleased to present BetMakers’ Annual Report
for the 2024 Financial Year, highlighting our progress
toward profitability and long-term sustainability.
FY24 has been a significant year of transition,
marked by securing key new contracts and renewals,
implementing new technologies, and completing the
major restructuring initiative that had been started
the previous year. These efforts have streamlined our
operations and substantially reduced operating costs.
We have made considerable strides towards
generating positive operating cash flows and
enhancing margins by simplifying our global operating
model, all while continuing to seek out and win
new business opportunities. As we look ahead to
FY25, our focus remains on delivering a sustainably
profitable business.
The investments we have made in
developing and expanding our industry-
leading technologies and services position
us well to seize the growth opportunities
we are nurturing in international markets...
...and to maintain robust partnerships with our existing
customers. The development of our Next Gen platform
is entering its final stages, and once launched, it
will represent a significant advancement in user
experience, customer engagement, and retention
capabilities. Moreover, it is expected to deliver
substantial operational efficiencies and cost savings
for BetMakers.
In FY24 we enhanced our Form and Content
capabilities with the acquisition of RACELAB. The
product will feature prominently in BetMakers’
solutions, including Next Gen Embedded and Next
Gen Platform. RACELAB's proprietary ProFORM™
ratings and associated products are a powerful market
differentiator for BetMakers and offer our customers
robust new tools for player engagement.
The broader Australian fixed odds wagering market
experienced some softness over the past 12 months
which impacted our revenue. In addition, we began to
migrate a key client, betr, off our platform, which has a
short-term impact on revenue. Despite these impacts,
we have built an incredibly strong foundation from
which we can build to position BetMakers as a strong
B2B player, offering a truly comprehensive solution
for fixed odds and tote wagering, that can generate
sustainable profits at attractive margins. The rollout
of the Next Gen products, continued improvements
in Global Tote contract margins, and growing
contributions from international markets are expected
to play a key part in these growth ambitions moving
forward, which we expect to show through in FY25.
FINANCIAL PERFORMANCE
The Company reported revenue of $95.2 million,
which was flat vs. pcp. FY24 Revenue was supported
by securing 13 new contracts with entities such as
bet365, Caesars Entertainment and Selangor Turf
Club, and 16 renewals including with Boyd Gaming,
Evoke and PointsBet Australia. Revenue growth was
offset by softer performance in the Australian market,
including with respect to the loss of the betr contract.
The major operational restructure announced
last year has now largely been completed. The
restructure allowed us to substantially reduce product
manufacturing, operations, staffing, administrative,
and corporate costs, and to simplify the business into
two key segments to create a sustainable business
that is well-prepared for the future.
Pleasingly, BetMakers recorded an adjusted EBITDA
loss of $7.2 million, significantly improved by 74% on
the FY23 loss of $27.8 million.
PEOPLE
BetMakers has a talented and dedicated team driving
the business forward and committed to delivering
long-term growth and sustainability. The strategic
operational restructure has allowed us to streamline
our operations and reposition the global workforce
with the right people in place to take the group
forward and grow.
In senior management, FY24 saw the departure of
CFO Anthony Pullin and the subsequent appointment
of Carl Henschke – most recently Managing Director
at Canaccord Genuity – as the new Chief Financial
7
BETMAKERS TECHNOLOGY GROUP LTD
Jake Henson
Chief Executive Officer
CEO's Letter
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CEO'S LETTER
Officer. We were delighted to welcome Carl, whose
many years of experience in financial services, capital
markets and legal sectors make him an excellent
addition to the BetMakers executive team.
The Board of Directors saw one change in FY24, with
Nick Chan stepping down from his non-executive
position in October of 2023.
AN ONGOING COMMITMENT TO SUSTAINABILITY
Since the establishment of the Environmental, Social
and Governance (ESG) Committee in FY22, the
Company has continued to identify and prioritise key
ESG initiatives. We continue to integrate a number of
responsible gaming features into BetMakers’ global
solutions and we have mandated additional employee
training and education programs on responsible
gaming. From a social perspective, we have continued
our popular volunteerism programs across our global
offices to encourage team members to support
worthy social initiatives where they live. We recognise
the importance of sustainable practices and remain
committed to continuing to work toward delivering
positive ESG outcomes.
KEY DEALS
In FY24 we were pleased to enter into a new
arrangement with PA Betting Services to launch The
AdVantage Platform, a turn-key B2B race streaming
and wagering platform for wagering operators. We
also signed market access and content agreements
with bet365 relating to the US states of New Jersey
and Colorado, a new contract to deliver racebook
services on GiG’s sportsbook platform SportX, a new
contract to deliver our newly revamped Price Manager
fixed odds solution to Kambi’s sportsbook, and a
contract to offer betting on French racing in Australia
through an agreement with Pari Mutuel Urbain (PMU)
of France. We secured a string of Global Tote contract
renewals, some with terms as long as 10 years, with
The Meadowlands, Hawthorne Race Course, Nassau
Regional Off-track Betting Corp., Boyd Gaming,
Jockey Club del Perú, and Argentina Jockey Club,
among others.
FY25 EXPECTATIONS
With the progress we have made over the past two
years to reset our cost base, streamline operations
and build quality new tech solutions we will be
focused in FY25 on continued improvement in
operating efficiency and gross margin.
We plan to deliver on the final components of our
tech rebuild, rolling out Next Gen to our Embedded
Solution and Platform clients and creating further
synergies across product categories such as web and
mobile wagering platforms and terminal software.
Post our tech rebuild, we are looking to further
streamline business operations to drive maximum
efficiency from our global service delivery network.
Our Sales and Commercial team continue to pursue
new and renewed long-term contracts and to build
out our deal flow pipeline by opening up new markets
with the intention of bringing racing and racing
products to new customers, in new markets.
I remain confident that BetMakers will continue
to make significant progress in FY25 and that our
F24 achievements in technology, operations, and
partnerships will make this a year of growth and
improved performance.
Regards,
Jake Henson
CEO
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DIRECTORS' REPORT
DIRECTORS'
REPORT
The Directors present their report, together with the financial statements, on the consolidated entity (referred to
hereafter as the 'Group') consisting of BetMakers Technology Group Ltd (referred to hereafter as the 'Company',
'BET' or 'Parent Entity') and the entities it controlled at the end of, or during, the year ended 30 June 2024.
PRINCIPAL ACTIVITIES
The Group’s principal activities during the financial year were the development and provision of software, data
and analytic products for the B2B wagering market and the production and distribution of racing content.
REVIEW OF OPERATIONS
The loss for the Group after providing for income tax amounted to $38,667,000 (30 June 2023: $38,781,000).
This includes a deferred tax asset movement of $20,130,000 (30 June 2023: $nil) and a share-based payments
benefit of $1,916,000 (30 June 2023: expense of $8,349,000).
The information presented in this Review of Operations has not been audited in accordance with the Australian
Auditing Standards. All figures are in Australian dollars unless otherwise stated.
The Directors consider EBITDA to reflect the core earnings of the Group. EBITDA is a financial measure which
is not prescribed by Australian Accounting Standards ('AAS') and represents the profit under AAS adjusted for
non-cash and significant items. The Group’s reconciliation of its statutory net loss before tax (‘NLBT’) for the
current and previous year to adjusted EBITDA is as follows:
2024
$'000
2023
$'000
VARIANCE
$'000
VARIANCE
%
Revenue
95,203
95,027
176
-
Gross margin
57,402
59,176
(1,774)
(3%)
Loss before income tax
(17,857)
(53,399)
35,542
(67%)
Add/(Less) back:
Depreciation and amortisation
12,196
11,793
403
3%
Net Finance costs
444
643
(199)
(31%)
Share-based payments expense
(1,916)
8,349
(10,265)
(123%)
Impairment of assets
238
8,870
(8,632)
(97%)
Deal costs
-
3,419
(3,419)
(100%)
Impairment of receivables
657
-
657
-
Gain on valuation of financial liabilities
(218)
(7,500)
7,282
(97%)
Bargain on purchase
(765)
-
(765)
-
Adjusted EBITDA
(7,221)
(27,825)
20,604
(74%)
Directors' Report
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DIRECTORS' REPORT
OPERATIONAL
HIGHLIGHTS
BetMakers is a leading B2B technology Company servicing the global racing and online sports betting
industries. The Group is defined through two divisions; Global Betting Services and Global Tote. The Company
achieved revenues for the year of $95,203,000, an increase of 0.18% compared to the prior year (2023:
$95,027,000).
• The completion of a major operational restructure that commended in FY23 to streamline costs and drive
efficiencies;
• Investment in the development of the Company’s Next Gen technologies; and
• Growth in the Global Tote division.
Consolidated
2024
$'000
2023
$'000
VARIANCE
$'000
VARIANCE
%
Global Betting Services
40,433
41,843
(1,410)
(3.37%)
Global Tote
54,770
53,184
1,586
2.98%
Total revenue
95,203
95,027
176
-
The FY24 operational highlights across the two divisions are outlined on the following pages.
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DIRECTORS' REPORT
DIVISION
HIGHLIGHTS
DELIVERED AND PROGRESSED KEY PRODUCT
UPGRADES
BetMakers’ Next Gen technologies for wagering are
poised for completion in the first part of FY25 with initial
rollout to Embedded Solution and Platform fixed odds
clients. Marking the most significant product revamp of
BetMakers’ history, Next Gen offers clients a faster, more
powerful solution, with key updates to the user journey,
integration of form, content and tips from the recently
acquired RACELAB’s ProForm™, a complete revamp
of the back office tools, gamification and tokenisation
upgrades for player engagement, and important CRM
tools for customer acquisition.
In addition to its important customer and end user
updates, changes in cloud infrastructure resulting from
Next Gen’s multi-tenant architecture are expected to
deliver additional cost savings.
In FY24, BetMakers rolled out a major update to its
Price Manager fixed odds pricing and risk management
platform, delivering new and enhanced features and
permanently moving away from legacy systems, thereby
reducing infrastructure costs.
The Company completed development of its new
DataFusor data integration system. Replacing legacy
systems for data compiling and distribution, DataFusor is
a highly efficient, reliable and scalable new platform that
is expected to streamline operations and provide a more
robust solution for BetMakers’ data needs. Rollout of
DataFusor began with the start of FY2025.
ROLLOUT OF CAESARS EMBEDDED RACEBOOK
SOLUTION
Rollout of BetMakers’ embedded racebook solution
commenced in FY24, with 22 Caesars locations in
Nevada now using the solution along with additional
Caesars sites in Iowa.
This stems from BetMakers’ agreement to become
the exclusive provider of pari-mutuel racing services
for Caesars Entertainment Inc’s brick-and-mortar retail
sportsbook locations.
BetMakers’ Embedded Racebook is a middleware and
software solution that connects Caesars’ William Hill
Liberty platform into pari-mutuel pools.
Global Tote’s software solutions support this kind of
complex integration with partners in adjacent gaming
industries including lottery provider and casinos,
providing a key differentiator for the division that we will
continue to leverage for future growth opportunities.
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DIRECTORS' REPORT
DIVISION
HIGHLIGHTS
PARTNER WITH PA BETTING SERVICES
In February 2024 the Company signed an agreement to
partner with PA Betting Services, part of UK-based PA
Media Group, to launch a new platform that combines
the latest wagering technologies and content solutions
in a single powerful platform branded "The AdVantage
Platform”.
The AdVantage Platform is being offered as a B2B
turn-key solution for wagering operators in international
markets, including the existing 200+ wagering customers
of PA Betting Services.
PROGRESSED INTERNATIONAL FIXED ODDS
RACING PRODUCT
In Q4 of FY24, BetMakers entered into two-year market
access and content agreements with Bet365 relating to
New Jersey and Colorado.
Under the agreements, Bet365 is licensed by BetMakers
to offer fixed odds bets on thoroughbred horse racing to
bet365 customers within New Jersey and to distribute
BetMakers’ thoroughbred racing content to bet365
customers in New Jersey and Colorado.
Bet365 will pay BetMakers a ‘Market Access Fee’ based
on a percentage of all fixed odds bets placed in New
Jersey on all thoroughbred racing events it offers to its
customers and a ‘Content Fee’ based on a percentage of
all fixed odds bets placed in New Jersey and Colorado
on applicable BetMakers content.
ACCOUNT ACQUISITION AND RETENTION
ACTIVITIES
In FY24 BetMakers’ GBS division signed four new
fixed odds and six new content management and
distribution services contracts, including with Kambi,
GiG and TonyBet for fixed odds and with PMU of
France for content management and distribution. The
division renewed three contracts including those with
William Hill and PointsBet Australia.
CHANGES IN BETR AGREEMENT
On 11 April 2024 the Company announced certain
changes to its agreement with fixed odds platform
client NTD Pty Limited (trading as “betr”) in connection
with a pending sale of the betr wagering service.
BetMakers will continue to provide minor services
to betr under a reduced service arrangement until
the migration of betr customers to the new owner’s
platform is complete, which is expected to occur in the
first part of FY2025.
The cessation of the betr agreement is expected
to result in significant savings and efficiencies
for BetMakers and has expedited the timeline for
completion and rollout of the Next Gen technologies
for BetMakers’ Embedded Solution and Platform
clients.
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DIRECTORS' REPORT
DIVISION
HIGHLIGHTS
STRONG ACCOUNT ACQUISITION AND RETENTION
In FY24 Global Tote secured three new and 13 renewal
contracts with key customers including Nassau Regional
Off-track Betting Corporation in New York, Columbus
Racing of Nebraska (a Caesars Entertainment property)
three Boyd Gaming racetracks, Hawthorne Race
Course in Illinois, Mohegan Tribal Gaming Authority
in Connecticut, Jockey Club del Perú, Selangor Turf
Club in Malaysia, Argentina Jockey Club, ZeTurf in the
Netherlands and The Meadowlands in New Jersey,
among others.
NEARING DELIVERY OF ENTERPRISE TOTE SOLUTION
FOR NORSK RIKSTOTO
Global Tote made significant progress in FY24 on the
development of a Quantum™ pari-mutuel solution for
Norsk Rikstoto, the sole purveyor of betting on horse
racing in Norway. The ten year agreement is for a fully
managed SaaS Quantum™ solution to replace Norsk
Rikstoto's current system and integration with existing
web, mobile and terminal platforms.
The Norway project is expected to go live in FY25 after
a lengthy development and customisation phase which
adds new features and functionality that will become part
of the global Quantum™ product suite.
OPERATIONAL AND TECHNOLOGY CHANGES
DRIVING EFFICIENCY AND CUSTOMER SATISFACTION
Global Tote continued in FY24 to deploy its BetLine
wagering terminals to clients including those in the USA,
Asia and Latin America, decreased costs for maintenance
and support and delivering an overall better user
experience.
Further changes to components and processes, along
with the introduction of a OneWatch™, Global Tote’s new
terminal monitoring and analytics solution, have driven
down service incidents dramatically, lowering costs and
increasing client satisfaction.
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DIRECTORS' REPORT
CORPORATE
HIGHLIGHTS
COMPLETED
ORGANISATIONAL
RESTRUCTURE TO
SIGNIFICANTLY REDUCE
OPERATING AND STAFF
COSTS
During FY24, the Company completed execution of an organisational
restructure and technology updates based on the recommendations of
a broad operational review conducted in FY23.
With completion of the major phases of the restructure, the cost
base has been significantly reduced, more closely corresponds with
current revenues, and reflects an organisation better prepared to
capitalise in FY2025 on the Company’s investments in Next Gen and in
opportunities in international markets.
The Company’s headcount at 30 June 2024 is approximately 376,
a significant reduction from the 31 December 2022 position of 568
employees.
ACQUIRED RACELAB
ASSETS
In FY24, BetMakers acquired RACELAB Assets, a highly strategic
acquisition that adds RACELAB’s leading ProForm™ proprietary models,
race form, preview, and statistics technology to BetMakers’ Form and
Content suite. The product will feature prominently in BetMakers’ Next
Gen Embedded and Next Gen Platform solutions.
CHANGES IN SENIOR
MANAGEMENT
Carl Henschke was named Chief Financial Officer in June 2024,
replacing Anthony Pullin who resigned in March 2024.
Nick Chan stepped down from his non-executive post on the Board
of Directors in October 2023. His position was not filled, as it was
determined that the board composition is appropriate for a company of
BetMakers’ size and profile.
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DIRECTORS' REPORT
STRATEGIC FOCUS &
OUTLOOK
With FY24 a turnaround year in which the Company focused on restoring operational discipline, FY25 will be a
year of transformation, with the Company focused on transforming into a business that can deliver sustainable
profit.
The FY25 strategic focus for the Company is:
CONTINUING TO IMPROVE OPERATING MARGINS
Having reset the cost base by identifying and addressing operational inefficiencies and streamlining operations,
a Company focus in FY2025 will be on improving margins further through reductions in operating costs and
overheads as well as cloud costs. These initiatives are expected to result in increased operating leverage in
FY25 and future period.
DELIVERING THE NEXT GEN PLATFORM
The final stage of the Next Gen platform are expected to go live in Q1 FY25 with significant benefits to platform
performance and operations. This will complete the product suite rebuild for GBS.
This is expected to deliver improved infrastructure and operating efficiencies, whilst offering customers
increased speed, a feature-rich user experience, and critical tools for user engagement and retention.
FOCUS ON NEW CUSTOMERS AND CONTRACTS WITH THE OPPORTUNITY FOR
HIGHER GROSS MARGIN
Completion of the Next Gen rebuild in FY25 is expected to deliver a full suite of higher gross margin, scalable
products from which we expect to realise growth from both Australian and international customers.
New contracts wins so far in FY25 include a new tote contract with a major operator in Chile and a partnership
arrangement with respect to the distribution of BetMakers Embedded Racebook platform via Sportingtech.
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DIRECTORS' REPORT
PRINCIPAL RISKS
Identifying and mitigating business risks that may affect the Group’s strategy and financial performance is an
essential part of the governance framework. This section outlines some of the key risks identified by the Group.
They are not listed in order of importance or likelihood to materialise.
RISK AREA
DESCRIPTION
Impact of Operating Losses
The Group has incurred operating losses in recent periods and may continue to do so
in the foreseeable future. This presents several risks, including but not limited to:
• Sustainability of Operations: Continued losses may impact the Group’s ability to
sustain its operations, potentially leading to the need for additional financing or
cost-cutting measures.
• Access to Capital: Persistent losses can affect the Group’s ability to raise capital
on favourable terms. Investors may be reluctant to provide additional funding, or
the cost of such funding may be prohibitively high.
• Market Confidence: Ongoing losses can erode market confidence in the Group’s
business model and management, which could also impact access to capital.
• Strategic Flexibility: Financial losses may limit the Group’s ability to invest in
growth opportunities, research and development, or other strategic initiatives that
are critical for long-term success.
Customer Credit Risk
The Group is subject to credit risk associated with its customers and in particular that
customers may fail to meet their payment obligations which could adversely affect
the Group’s performance and its financial position. This risk can be impacted by
several factors including:
• Creditworthiness of Customers: The risk that customers may default on their
payments due to financial difficulties, leading to bad debt expenses and impacting
the Group’s cash flow.
• Economic Conditions: Adverse economic conditions, such as a recession, can
increase the likelihood of customer defaults as businesses and consumers face
financial strain.
• Credit Policies: The effectiveness of the Group’s credit policies and procedures in
assessing and managing customer credit risk.
• Collection Processes: The efficiency and effectiveness of the Group’s processes
for collecting outstanding receivables. Poor collection practices can result in
delayed payments and increased bad debts.
Deterioration in Financial
Position
The Group faces the risk of a deterioration in its financial position due to various
factors, including but not limited to fluctuations in market conditions that can
adversely impact the Group’s revenue and profitability; economic recessions
or slowdowns that can reduce demand for the Group’s products or services; or
inefficiencies or disruptions in operations that can lead to increased costs and
reduced margins. If these risks materialise, in certain circumstances the Group may
be required to raise additional equity capital to further supports its business.
Customer Risk
The Group faces the risk of encountering challenges in attracting new customers
due to several factors including but not limited to increased market competition,
changing preferences of the Group’s customers, negative publicity or a decline in the
reputation of the Group, economic downturns or rapid advancements in technology
that may require significant investment.
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DIRECTORS' REPORT
RISK AREA
DESCRIPTION
Licensing and Regulatory
The Group operates in heavily regulated industries and jurisdictions. Accordingly,
there is an exposure to a range of risks relating to compliance with, changes to,
or uncertainty in, the relevant legal and regulatory regimes in those jurisdictions.
Changes to laws and regulations or failure to comply may have a material adverse
effect on the Group’s business, financial position and prospects, or lead to license
suspension or cancellation.
The Group’s contracts with customers may require approval or consent of one or
more Australian or foreign governments, gambling regulators or other regulators.
There is a risk that such approval or consent may not be granted and, in such
circumstances, the Group or the customer may become unable to comply with
contractual obligations, potentially having a material adverse impact on financial
performance.
Technology and Software
The Group’s business is based largely on the software, source code, technology and
computer programs which comprise of its online wagering platforms. There is a risk
that this technology and/or software may be superseded or displaced in the market
by new technology offerings or software which customers perceive have advantages
over the Group’s offerings. Furthermore, the Group’s systems can be affected by
numerous factors including but not limited to data losses, computer system faults,
failure of or suspension from key data feeds, data network failures, and catastrophic
event such as natural disaster, computer viruses of power failure.
Intellectual Property and
Obligations
There is a risk that failure or inability to protect intellectual property rights may have
a significant adverse effect on operations, financial performance and competitive
advantage. Further, there is a risk that operations, products, services or platforms
may infringe the intellectual property rights of third parties. If any claim or litigation
is brought against the Group which alleges an infringement on another party’s
intellectual property rights, this could result in the Group being subject to significant
liability for damages or losing the right to use the intellectual property.
Security Software,
Technology Breaches and
Improper Access to Personal
Data
By their nature, information technology systems are susceptible to cyber-attacks with
third parties seeking unauthorised access to data, networks, systems and databases.
Further, third party suppliers may receive and store information from the Group or
its customers and although this information is limited and subject to confidentiality
obligations, if third party suppliers fail to adopt or adhere to robust security practices,
any such information may be improperly accessed, used or disclosed.
Reliance on Agreements
with Sports and Racing
Controlling Bodies
The Group has in place various approvals and authorities granted by racing
controlling bodies which permit the publishing and/or use of relevant race field
information associated with those racing controlling bodies. There is a requirement to
comply with certain terms and conditions, provisions, rules and regulations provided
under the relevant state/territory laws. Under such legislation, rules and regulations,
the racing controlling bodies have the discretion to determine the types of bets
the Group is permitted to take. A removal of one or more of these bet types may
materially adversely affect business operations and financial position.
Racing and Sporting
Products
The Group is reliant on various state and international racing and sporting controlling
bodies providing a regular program of events for the purposes of wagering. A
significant reduction in the number of race meetings or sporting fixtures, or the
occurrence of an event which impacts adversely on the global racing or sport
industries, or which otherwise disrupts the scheduled racing or sporting program,
may have an adverse effect on operational and financial performance.
Consumer Environment
The Group provides wagering operators with technology and data solutions that
support wagering activities. Changes in relation to consumers and social attitudes
towards wagering, and the regulatory framework surrounding the product may have a
direct financial impact on the Group’s customers and therefore an indirect impact on
the Group’s financial performance.
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DIRECTORS' REPORT
RISK AREA
DESCRIPTION
Anti-Money Laundering
(AML) and Counter Terrorism
Financing (CTF)
Under the Group’s licenses, there is a requirement to comply with several obligations
under applicable AML/CTF legislation, including, for example, requirements to
develop and implement an AML/CTF program, conduct customer due diligence
and report suspect matters and transactions to the applicable regulator. Failure to
adequately monitor and mitigate against money laundering and other fraudulent
activities, or failure to comply with obligations under AML/CTF legislation Act may
result in civil or criminal liability for the Group.
DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
On 31 October 2023, the Company announced changes to its Board, namely that Nicholas (“Nick”) Chan,
formerly Non-Executive Director, had stepped down from the Board. It was determined that the Board’s current
composition is appropriate for the current size and profile of BetMakers and therefore there is no intention to
replace Nick’s role on the Board.
On 11 April 2024, the Company settled the contingent consideration of $3.0 million for the previous acquisition
on Punting Form in the form of:
• $1.50 million in cash and $1.50 million in shares; and
On 14 May 2024, the Company settled the contingent consideration of $0.5 million for the previous acquisition
on Form Cruncher in the form of:
• $0.25 million in cash and $0.01 million in shares and a fair value income adjustment of $0.22 million.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly
affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial
years.
DIRECTORS
The following persons were Directors of BetMakers Technology Group Ltd during the whole of the financial year
and up to the date of this report, unless otherwise stated:
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DIRECTORS' REPORT
BOARD OF DIRECTORS
MATT DAVEY
President and Executive
Chairman
Appointed 31 January 2023
Qualifications
Bachelor in Electrical/Electronic
Engineering from Charles Darwin
University
Matt Davey possesses extensive expertise in the gaming and wagering industry
within the United States. Previously, he served as the Chief Executive Officer of NYX
Gaming Group, a company that was subsequently acquired by Scientific Games
(NASDAQ: SGMS). During his tenure as CEO at NYX Gaming Group, Matt Davey
demonstrated exceptional leadership by formulating and implementing a highly
successful corporate strategy, resulting in substantial revenue growth. Furthermore,
he spearheaded the acquisition of ten companies, including OpenBet, a renowned
provider powering one of the largest volumes of online sports bets worldwide. This
strategic move contributed significantly to NYX Gaming Group's emergence as a
leading supplier of digital gaming content and cutting-edge technology.
Other Current Directorships
None
Former Directorships (Last 3 years)
Executive Director, Tekkorp Digital Acquisition Corp (NASDAQ: TEKK)
Formerly Non-Executive Director, BetMakers Technology Group Ltd (4 September
2020 to 21 April 2022), now Executive Director
SIMON DULHUNTY
Non-Executive Director
Special Responsibilities
Member, Audit & Risk Committee
Member, Nomination &
Remuneration Committee
Qualifications
Commenced work after school
undertaking a cadetship in
journalism.
Simon Dulhunty has more than 25 years of media experience. He is a former Fairfax
Media executive where he has held senior roles including roles as Editor of The Sun-
Herald and General Manager of Fairfax mobile development for SMH, The Age and
AFR apps. Simon now operates a private consultancy where he serves as corporate
affairs, issues management and business development advisor to a range of clients
from multi-national companies, sporting organisations, technology start-ups and high-
profile individuals.
Other Current Directorships
None
Former Directorships (Last 3 years)
None
Special Responsibilities
Member, Audit & Risk Committee
Member, Nomination & Remuneration Committee
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DIRECTORS' REPORT
BOARD OF DIRECTORS (CONTINUED)
REBEKAH GILES
Non-Executive Director
Special Responsibilities
Chair, Nomination & Remuneration
Committee Member, Audit & Risk
Committee
Qualifications
Bachelor of Laws (Hons), Grad Dip
Legal Practice, Public Notary NSW
Rebekah Giles possesses an extensive legal career spanning over 20 years, with a
focus on contentious matters. She has garnered a wealth of expertise in handling
complex commercial disputes, sensitive legal conflicts, regulatory investigations,
reputational risk management, prosecution, and inquiries. As the principal director of
the boutique legal firm, Company (Giles), Rebekah holds a prominent position in the
legal industry. In addition to her legal practice, Rebekah maintains a diverse portfolio
of non-executive directorships across various sectors, including government, sports,
and private enterprises. Noteworthy positions include Chair of the Board of Governors
for the Centennial Parklands Foundation in Sydney, Western Sydney Football Club
(AFL GWS Giants), FrontRunners, SOBA (Sydney Olympic Park Business Association),
Greyhound Racing NW, and the Association for Women in Insurance. Beyond her
professional achievements, Rebekah has a longstanding passion for the racing
industry. Her close connections to prominent racehorses such as the 2021 Melbourne
Cup winner Very Elleegant, 2021 Caulfield Cup winner Incentivise, and 2019 The
Everest winner Yes Yes Yes exemplify her deep involvement and appreciation for the
sport.
Other Current Directorships
None
Former Directorships (Last 3 years)
None
Special Responsibilities
Chair, Nomination & Remuneration Committee
Member, Audit & Risk Committee
ANNA MASSION
Non-Executive Director
Special Responsibilities
Chair, Audit & Risk Committee
Member, Nomination &
Remuneration Committee
Qualifications
MBA and BS from The Wharton
School at the University of
Pennsylvania with a concentration
in finance for both undergraduate
and graduate studies.
Anna Massion is an accomplished finance professional with over 20 years of
experience as an independent director and investment professional. Ms. Massion
joined the board of BetMakers in March 2022 and currently serves as an Non-
Executive Director on the boards of Playtech, PLC, AGS LLC, and Gaming Realms PLC.
She previously served as a Non Executive Director for Artemis Strategic Investment
Corporation. Prior to her board appointments, Ms. Massion was a Senior Analyst
at PAR Capital Management from 2014-2019, held the role of Director of Gaming,
Lodging and Leisure at Hedgeye Risk Management, LLC from 2008-2014, worked
at Marathon Asset Management as a Vice President in the Global Equity Fund, and
spent 7 years at JPMorgan Securities with her last role as a Vice President on the
Proprietary Trading Desk.
Other Current Directorships
Non-Executive Director, Playtech PLC (LSE: PTEC)
Non-Executive Director, AGS LLC (NYSE: AGS)
Non-Executive Director, Gaming Realms PLC (LSE: GMR)
Former Directorships (Last 3 years)
Non-Executive Director, Artemis Strategic Investment Corp (NASDAQ: ARTE)
Special Responsibilities
Chair, Audit & Risk Committee
Member, Nomination & Remuneration Committee
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DIRECTORS' REPORT
BOARD COMPOSITION AND SKILLS MATRIX
As at 30 June 2024, the Board is comprised of three (3) Independent Non-Executive Directors, and one (1)
Executive Director.
Members of the Board have been appointed to encompass a varying range of qualifications, skills and
experience that are considered essential to the successful management of the group. Key skills and experience
that the Board should comprise of are as follows:
• Bookmaking and betting industry experience
• Information technology
• Business acquisition and integration skills
• Financial literacy and legal and regulatory knowledge
• Diversity
• Policy and regulatory development and reform
• Health, safety and environment and social responsibility
• Organisational development and human resources.
The Board regularly reviews the skills matrix to ensure it covers the skills needed to address existing and
emerging business and governance issues relevant to the Group.
MEETINGS OF DIRECTORS
The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held
during the year ended 30 June 2024, and the number of meetings attended by each Director were:
Board
Meetings
Audit & Risk
Committee
Nomination
& Remuneration
Committee
ATTENDED
HELD
ATTENDED
HELD
ATTENDED
HELD
Matt Davey
8
8
-
-
-
-
Nicholas Chan 1
4
4
2
2
2
2
Simon Dulhunty
8
8
3
3
3
3
Rebekah Giles
8
8
3
3
3
3
Anna Massion
8
8
3
3
3
3
HELD: REPRESENTS THE NUMBER OF MEETINGS HELD DURING THE TIME THE DIRECTOR HELD OFFICE OR WAS A MEMBER OF
THE RELEVANT COMMITTEE.
1. Nicholas Chan was a Director up to 31 October 2023.
COMPANY SECRETARY
Ms Charly Duffy has a Bachelor of Law and Graduate Diploma of Applied Corporate Governance. Charly is a
qualified and practising corporate and commercial lawyer with extensive experience in private practice and
is the director and principal of cdPlus Corporate Services, a company secretarial and legal services business.
Charly brings extensive legal experience to BetMakers, with a particular focus on equity capital markets,
mergers and acquisitions, corporate governance, initial public offerings, secondary capital raisings, business
and share sale transactions, takeovers, Takeovers Panel proceedings, financing, ASIC and ASX compliance and
all aspects of general corporate and commercial law.
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DIRECTORS' REPORT
REMUNERATION REPORT (AUDITED)
The remuneration report, which has been audited, outlines remuneration arrangements for Key Management
Personnel ('KMP') of the Group, in accordance with the requirements of the Corporations Act 2001 and its
regulations. KMP are defined as those persons having authority and responsibility for planning, directing and
controlling the major activities of the Group, directly or indirectly.
Principles used to Determine the Nature and Amount of Remuneration
KEY OBJECTIVES OF THE GROUP’S EXECUTIVE REWARD FRAMEWORK
Align executive reward with
the achievement of strategic
objectives and value creation for
shareholders.
Attract, motivate and retain high
performance and high-quality
executive personnel.
Deliver transparency and clear
structure for executive reward
and alignment to shareholders’
interest.
The Remuneration Committee is responsible for determining and reviewing remuneration arrangements for
Directors and executives and regularly reviews remuneration arrangements, framework and structure. The
framework is considered to conform to market best practice for the delivery of reward; and in accordance with
best practice corporate governance, the structure of Non-Executive and Executive Director remuneration is
separate.
NON-EXECUTIVE DIRECTORS’ REMUNERATION
Remuneration to Non-Executive Directors reflects the demands and responsibilities of their role. Non-Executive
Directors' remuneration is reviewed annually by the Board. The Chairman's fees are determined independently
to the fees of other Non-Executive Directors based on comparative roles in the external market. The Chairman
is not present at any discussions relating to the determination of their own remuneration.
During the year, 221,488 shares were issued to non-executive Director, Anna Massion, and 50,048 shares were
issued to non-executive Director, Rebekah Giles, on conversion of that number of service rights respectively.
The vesting conditions attached to these service rights are linked to both Anna Massion and Rebekah Giles
remaining in their roles as Non-Executive Directors.
ASX listing rules require the aggregate Non-Executive Directors' remuneration be determined periodically
by shareholders. The most recent determination was at the AGM held on 22 November 2021, where the
shareholders approved that the aggregate remuneration must not exceed $850,000 per annum.
EXECUTIVE REMUNERATION
The Group aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components. The executive remuneration and reward
framework has three components:
1. BASE PAY AND NON-
MONETARY BENEFITS
2. SHORT-TERM PERFORMANCE
INCENTIVES
3. SHARE-BASED PAYMENTS
(LONG-TERM INCENTIVES)
Component
Inclusions
Base salary, superannuation
and other benefits
Cash and share-based
incentives
Options and/or performance
rights
Purpose
Compensation for day-to-day
operational responsibilities
Provide a tangible incentive
to improve Company and
personal performance
Assist in the reward, retention
and motivation of executives
Payment
Dependant on
Individual and business unit
performance, overall Group
performance and comparable
market remuneration
Achievement of approved
business and personal Key
Performance Indicators (KPIs),
period of employment
Employment continuation for
the entire vesting period and
achievement of performance-
based vesting conditions
Timeframe
Immediate
Annual
Varied tranches - 1 to 4 years
REMUNERATION REPORT
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DIRECTORS' REPORT
The combination of the above comprises the executive’s total remuneration.
1. BASE PAY AND NON-MONETARY BENEFITS
Executive remuneration consisting of base salary and compulsory superannuation
is based on the principles of motivating senior executives to pursue the Group’s
long-term growth and success, demonstrate a clear relationship between the
Group’s overall performance and individual performance, and providing competitive
remuneration to retain key staff and business/industry knowledge.
2. SHORT-TERM PERFORMANCE INCENTIVES
Overview
The Group provides annual short-term performance incentives (STI) in the form of
variable at risk remuneration, with the intention to reward executive performance
against Group performance measures and personal performance measures that
represent the key priorities for the participant.
Performance Period
STI runs on the Group’s financial year from 1 July to 30 June.
Performance Criteria
The key factors that are used to determine STI eligibility and payment are as follows:
• Business performance KPIs based on achievement of cash flow, EBITDA and
revenue targets for the financial year. At the end of the assessment period the
Board will assess the Group’s performance against the established targets.
• Personal performance KPIs aligned to departmental and company strategies.
Personal performance goals are set and assessed for each financial year.
• Commencement and retention of employment for the entirety of the assessment
period.
Discretion
Recommended STI award is presented to the Board and Nomination & Remuneration
Committee for approval. Overall Board discretion includes but is not limited to the
Board’s authority to veto awards under the STI plan.
3. SHARE-BASED PAYMENTS (LONG-TERM INCENTIVES)
Overview
Subject to the ASX listing rules and under the terms of the long-term incentives
plan (LTIP), the Board may grant options and/or performance rights (options with a
nil exercise price) to eligible participants (awards). Each award granted represents
a right to receive one share once the award vests and is exercised by the relevant
participant.
Performance Period
Options or performance rights awarded under the LTIP will be subject to vesting
periods and conditions as stipulated in the terms of the plan as determined by the
Board. It is typical for the Board to award rights that span at least 3 years and have
annual vesting conditions.
Performance Criteria
The Board will determine the terms and conditions of awards under the LTIP including
but not limited to the following:
• Which individuals will be invited to participate;
• The number of awards to be granted to each participant;
• The fee payable, if any, by participants;
• The terms on which the awards will vest and become exercisable;
• The exercise price, if any, of each award;
• The period during which a vested award can be exercised; and
• Any forfeiture conditions or disposal restrictions applying to the awards and
shares received upon exercise of awards.
Awards granted during FY24 contained vesting conditions subject to:
• The Company’s Total Shareholder Return compared to an ASX peer comparator
group; and
• Maintaining employment for the duration of the vesting period.
Discretion
The Board has sole and absolute discretion to determine the terms and conditions of
awards which are granted under the LTIP.
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DIRECTORS' REPORT
GROUP PERFORMANCE AND LINK TO REMUNERATION
Remuneration for certain individuals is directly linked to the performance of the Group. A cash bonus and
incentive payments are dependent on KPIs being met. Refer to the section 'Additional information' below for
details of the earnings and total shareholders return for the last five years.
USE OF REMUNERATION CONSULTANTS
The Nomination & Remuneration Committee may, from time to time, receive advice from external advisors to
guide the Committee and provide relevant market information on the remuneration of Non-Executive Directors,
Executive Directors and KMP. Any advice received will form part of the Committee’s review but will not be used
to provide quantum of remuneration packages and/or structure.
During the financial year ended 30 June 2024, the Committee did not receive any remuneration
recommendations from a remuneration consultant, as defined by the Corporations Act 2001.
The Group did engage a third-party advisor to perform a review of its remuneration benchmarking for Non-
Executive Directors, Executive Directors and KMPs. No remuneration recommendations were provided as
defined by the Corporations Act 2001.
VOTING AND COMMENTS MADE AT THE COMPANY’S 2023 ANNUAL GENERAL MEETING (‘AGM’)
At the 2023 AGM, 75.50% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2023.
KEY MANAGEMENT PERSONNEL
The KMP of the Group consisted of the following persons:
NAME
POSITION
CHANGES DURING FY24
Non-Executive
Directors
Simon Dulhunty
Rebekah Giles
Anna Massion
Nicholas Chan
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Resigned on 31 October
2023
Executive Directors
Matt Davey
Executive Chairman
Executive KMP
Jake Henson
Todd Buckingham
Carl Henschke
Anthony Pullin
Chief Executive Officer
Chief Growth Officer
Chief Financial Officer
Chief Financial Officer
Appointed on 17 June 2024,
effective from 1 July 2024
Resigned on 27 March 2024
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DIRECTORS' REPORT
DETAILS OF REMUNERATION
Short-Term
Benefits
Post-
Employment
Benefits
Long-Term
Benefits
Share-Based
Payments2
2024
CASH
SALARY
AND FEES
($)
CASH
BONUS1 ($)
NON-
MONETARY
($)
SUPER-
ANNUATION
($)
LEAVE
BENEFITS ($)
EQUITY-
SETTLED
OPTIONS ($)
EQUITY-
SETTLED
PERFOR-
MANCE
RIGHTS
($)
TOTAL
($)
Non-Executive Directors
Nicholas
Chan
35,247
-
9,260
211
-
-
-
44,718
Simon
Dulhunty
99,548
-
-
10,529
-
-
-
110,077
Rebekah
Giles
85,973
-
-
9,457
-
-
32,846
128,276
Anna
Massion
20,000
-
-
-
-
-
126,660
146,660
Executive Directors
Matt Davey
351,029
-
-
-
-
-
-
351,029
Executive KMP
Jake Henson
372,115
-
16,450
27,500
-
-
247,500
663,565
Todd
Buckingham3
325,682
-
13,462
27,500
-
-
1,422,280
1,788,924
Anthony
Pullin
257,144
-
-
23,455
-
-
165,000
445,599
TOTAL
Total
1,546,738
-
39,172
98,652
-
-
1,994,286
3,678,848
1. Represents remuneration for the period from 1 July 2023 to date of resignation 27 March 2024.
2. Includes $41,191 paid to Nicholas Chan to under a contractor agreement.
3. As noted with respect to FY23, upon resignation as Managing Director, Todd Buckingham had 5,000,000 performance rights that were subject to a service
condition. Those rights vested but not yet been exercised at 30 June 2024. In accordance with the AASB 2, the $1.42m represents the expense recognised
upon the vesting conditions being met for those 5,000,000 performance rights.
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DIRECTORS' REPORT
DETAILS OF REMUNERATION (CONTINUED)
Short-Term
Benefits
Post-
Employment
Benefits
Long-Term
Benefits
Share-Based
Payments2
2023
CASH
SALARY
AND FEES
($)
CASH
BONUS1 ($)
NON-
MONETARY
($)
SUPER-
ANNUATION
($)
LEAVE
BENEFITS ($)
EQUITY-
SETTLED
OPTIONS ($)
EQUITY-
SETTLED
PERFOR-
MANCE
RIGHTS
($)
TOTAL
($)
Non-Executive Directors
Nicholas
Chan
113,385
-
36,450
15,524
-
-
-
165,358
Simon
Dulhunty
102,459
-
-
10,758
-
-
-
113,217
Rebekah
Giles
111,802
-
-
11,739
-
-
14,561
138,102
Anna
Massion
18,495
-
-
-
-
-
59,036
77,530
Executive Directors
Matt Davey
148,893
-
-
-
-
-
138,435
287,328
Executive KMP
Jake Henson
358,558
-
15,894
27,500
-
-
287,257
689,209
Todd
Buckingham3
314,510
-
3,671
27,500
-
-
5,463,986
5,809,667
Anthony
Pullin
279,999
-
-
27,500
-
-
122,587
430,086
TOTAL
Total
1,448,101
-
56,015
120,521
-
-
6,085,862
7,710,499
1. A cash short term incentive (STI) has not been accrued and was not paid to Executive KMP in relation to FY23 performance.
2. Amounts disclosed within Share-Based Payments relate to the expense recognised by the Group during the period, in relation to the KMPs performance
rights held. Refer to Note 3 for details on how the Group accounts for Share-Based Payments.
3. Upon his resignation as Managing Director on 31 January 2023, Todd Buckingham agreed to the cancellation of 10,000,000 performance rights during FY23.
However, as required under AASB 2, the expense in relation to the 10,000,000 cancelled performance rights was accelerated. Accordingly, during FY23,
an expense of $3,131,516 was recognised. As these performance rights were cancelled, they will not vest and will not be convertible to ordinary shares.
Following his resignation, Todd Buckingham remained eligible for 5,000,000 performance rights which were subject to a service condition.
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DIRECTORS' REPORT
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed Remuneration
At Risk - STI
At Risk - LTI1
2024
2023
2024
2023
2024
2023
Non-Executive Directors
Nicholas Chan
100%
100%
-
-
-
-
Simon Dulhunty
100%
100%
-
-
-
-
Rebekah Giles
74%
89%
-
-
26%
11%
Anna Massion
14%
24%
-
-
86%
76%
Executive Directors
Matt Davey
100%
52%
-
-
-
48%
Executive KMP
Jake Henson
63%
58%
-
-
37%
42%
Todd Buckingham
20%
13%
-
-
50%
87%
Anthony Pullin
63%
71%
-
-
37%
29%
1. Amounts disclosed within 'At risk – LTI' (i.e. Share-Based Payments) is calculated based on the expense recognised by the Group during the period, in
relation to the KMPs options and performance rights held. Refer to Note 3 for details on how the Group accounts for Share- Based Payments.
The proportion of the cash bonus paid/payable or forfeited is as follows:
Cash Bonus Paid
Cash Bonus Forfeited
2024
2023
2024
2023
Jake Henson
-
100.00%
100%
100.00%
Todd Buckingham
-
96.50%
100%
100.00%
Anthony Pullin
-
96.50%
100%
100.00%
A cash bonus has not been accrued and is not expected to be paid to Executive KMP in relation to FY24
performance.
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DIRECTORS' REPORT
SERVICE AGREEMENTS
Remuneration and other terms of employment for KMP are formalised in service agreements as detailed below:
SERVICE AGREEMENTS
Name
Title
Agreement Commenced
Term of Agreement
Details
Jake Henson
Chief Executive Officer
16 May 2022, variation of employment, 30 January 2023
Ongoing basis
With effect from 31 January 2023, Jake Henson receives an annual salary of $375,000
(excluding superannuation) and is also eligible for:
• Mandatory superannuation contributions.
• Short-term performance incentives.
• Long-term performance incentives.
The Group or Jake may terminate his employment agreement by giving six months’
notice in writing, or by the Group making a payment in lieu of part or all of the notice
period, in addition to the usual summary dismissal grounds. Other than in relation
to the protection of confidential information and intellectual property, Jake will be
subject to a restraint on solicitation of clients, suppliers and employees for a period of
12 months following the termination of his employment.
Name
Title
Agreement Commenced
Term of Agreement
Details
Todd Buckingham
Chief Growth Officer
16 February 2021, variation of employment 31 January 2023
From the commencement date to 30 June 2024
With effect from 31 January 2023, Todd Buckingham receives a total fixed
remuneration of $350,000 per annum (including superannuation) which includes all
non-cash benefits he may be entitled to receive plus a motor vehicle allowance of
$20,000 per annum.
Todd may not terminate the agreement before the end of the term. He may only
terminate the agreement by giving at least six months’ notice on or after 1 January
2024. Todd will be subject to a restraint on solicitation of clients, suppliers and
employees for a period of 12 months following the termination of his employment.
KMP have no entitlement to termination payments in the event of removal for misconduct.
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DIRECTORS' REPORT
SHARE-BASED COMPENSATION
ISSUE OF SHARES
No shares were issued to Directors and other KMP as part of compensation during the year ended 30 June
2024.
OPTIONS
There were no options over ordinary shares issued to Directors and other KMP as part of compensation that
were outstanding as at 30 June 2024.
Details of options over ordinary shares granted, vested and lapsed for directors and other KMP as part of
compensation during the year ended 30 June 2017 are set out below.
PERFORMANCE RIGHTS
The terms and conditions of each grant of performance rights issued by 30 June 2024 over ordinary shares
affecting remuneration of Directors and other KMP in this financial year or future reporting years are as follows:
NAME
NUMBER
OF RIGHTS
GRANTED
GRANT DATE
VESTING
DATE AND
EXERCISABLE
DATE
EXPIRY DATE
EXERCISE PRICE
FAIR VALUE
PER RIGHT AT
GRANT DATE
Matt Davey
1,500,000
31-Jan-23
30-Jun-25
30-Jun-26
$0.000
$0.160
2,500,000
31-Jan-23
30-Jun-26
30-Jun-27
$0.000
$0.160
Jake Henson
250,000
23-Jun-21
31-Dec-24
30-Jun-25
$0.000
$0.770
750,000
31-Jan-23
30-Jun-25
30-Jun-26
$0.000
$0.160
1,250,000
31-Jan-23
30-Jun-26
30-Jun-27
$0.000
$0.160
Todd Buckingham
5,000,000
29-Apr-21
30-Jun-24
30-Jun-25
$0.000
$0.900
All performance rights are subject to performance and term-of-service related vesting conditions. Performance
rights granted carry no dividend or voting rights. All performance rights granted in FY23 contained vesting
conditions subject to:
• The Company’s Total Shareholder Return compared to an ASX peer comparator group; and
• Maintaining employment for the duration of the vesting period.
Values of performance rights over ordinary shares granted and vested and number of performance rights
lapsed for Directors and other KMP as part of compensation during the year ended 30 June 2024 are set out
below:
NAME
GRANT DATE
VESTING
DATE
NUMBER OF
OPTIONS
GRANTED
VALUE OF
OPTIONS
GRANTED ($)
VALUE OF
OPTIONS
VESTED ($)
NUMBER OF
OPTIONS
LAPSED
VALUE OF
OPTIONS
LAPSED ($)
Matt Davey
31-Jan-23
30-Jun-24
-
-
-
1,000,000
$0.170
Jake Henson
23-Jun-21
30-Jun-24
-
-
-
500,000
$0.490
Jake Henson
31-Jan-23
30-Jun-24
-
-
-
500,000
$0.170
Todd Buckingham
29-Apr-21
30-Jun-24
-
-
-
5,000,000
$0.580
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DIRECTORS' REPORT
MOVEMENT IN PERFORMANCE RIGHTS
NAME
BALANCE AT THE
START OF THE
YEAR
1 JULY 2023
GRANTED
VESTED
EXERCISED
EXPIRED/
FORFEITED/OTHER
BALANCE AT THE
END OF THE YEAR
30 JUNE 20242
Matt Davey
5,000,000
-
-
(1,000,000)
4,000,000
Jake Henson
3,625,000
-
(375,000)
(1,000,000)
2,250,000
Todd Buckingham3
10,000,000
-
-
(5,000,000)
5,000,000
Anthony Pullin1
750,000
-
(250,000)
(500,000)
-
Total
19,375,000
-
(625,000)
(7,500,000)
11,250,000
1. The 500,000 Performance Rights shown in the Expired/Forfeited/Other Column, represents performance rights that were forfeited at the date of resignation.
2. Nil performance rights were exercisable at year end.
3. 5,000,000 performance rights vested and not yet issued at 30 June 2024. Refer to the commentary in “Details of Remuneration” on page 29 of this
Annual Report.
5,000,0000 performance rights forfeited but not yet cancelled at 30 June 2024. Refer to the commentary in “Details of Remuneration” on page 29 of this
Annual Report.
SERVICE RIGHTS
The terms and conditions of each grant of service rights issued by 30 June 2024 over ordinary shares affecting
remuneration of Directors and other KMP in this financial year or future reporting years are as follows:
NAME
NUMBER
OF RIGHTS
GRANTED
GRANT DATE
VESTING
DATE AND
EXERCISABLE
DATE
EXPIRY DATE
EXERCISE PRICE
FAIR VALUE
PER RIGHT AT
GRANT DATE
Rebekah Giles1
31,284
07-Feb-22
07-Feb-25
07-Feb-37
$0.000
$0.750
Anna Massion1
152,264
03-Mar-22
03-Mar-25
08-Feb-32
$0.000
$0.610
1. Relates to ‘Service Rights’ issued as compensation for performing Director’s duties, vesting upon satisfaction of nominated service-based milestones. Service
rights granted carry no dividend or voting rights.
No new service rights were granted and no service rights lapsed for Directors and other KMP as part of
compensation during the year ended 30 June 2024.
MOVEMENT IN SERVICE RIGHTS
Service rights over ordinary shares in the Group held during the financial year by each Director and other KMP
is set out below:
NAME
BALANCE AT THE
START OF THE
YEAR
1 JULY 2023
GRANTED
VESTED
EXERCISED
EXPIRED/
FORFEITED/OTHER
BALANCE AT THE
END OF THE YEAR
30 JUNE 20241
Rebekah Giles
81,332
-
(50,048)
-
31,284
Anna Massion
373,752
-
(221,488)
-
152,264
Total
455,084
-
(271,536)
-
183,548
1. Nil service rights were exercisable at year end.
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DIRECTORS' REPORT
ADDITIONAL DISCLOSURES RELATING TO KMP
SHAREHOLDING
NAME
BALANCE AT THE
START OF THE YEAR
1 JULY 2023
RECEIVED AS PART
OF REMUNERATION1
ADDITIONS
OTHER
BALANCE AT THE
END OF THE YEAR
30 JUNE 2024
Matt Davey
102,500,000
-
11,500,000
-
114,000,000
Nicholas Chan
3,853,169
-
200,000
(4,053,169)
-
Simon Dulhunty
3,973,620
-
-
-
3,973,620
Rebekah Giles
161,802
50,048
-
-
211,850
Anna Massion
124,587
221,488
-
-
346,075
Jake Henson
2,737,836
-
556,818
-
3,294,654
Todd Buckingham
20,256,834
-
500,000
-
20,756,834
Anthony Pullin2
2,318,642
-
250,000
(2,568,642)
-
Total
135,800,227
271,536
13,006,818
(6,495,548)
142,583,033
1. Relate to ordinary shares received on the exercise of share based compensation (options, performance rights and service rights) during FY24.
2. Represents shares held at the time of the resignation.
ADDITIONAL INFORMATION
The earnings of the Group for the five years to 30 June 2024 are summarised below:
2024
$'000
2023
$'000
2022
$'000
2021
$'000
2020
$'000
Sales revenue
95,203
95,027
91,682
19,458
8,582
Loss after income tax
(38,667)
(38,781)
(89,234)
(17,459)
(2,141)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2024
2023
2022
2021
2020
Share Price at financial year end ($)
0.08
0.13
0.34
1.07
0.43
Loss per share (cents per share)
(4.03)
(4.16)
(10.21)
(2.59)
(0.47)
THIS CONCLUDES THE REMUNERATION REPORT, WHICH HAS BEEN AUDITED.
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DIRECTORS' REPORT
SHARES UNDER OPTION
There were no unissued ordinary shares of BetMakers Technology Group Ltd under option outstanding at the
date of this report.
SHARES ISSUED ON THE EXERCISE OF OPTIONS
There were no ordinary shares of BetMakers Technology Group Ltd issued on the exercise of options during the
year ended 30 June 2024 and up to the date of this report.
SHARES UNDER PERFORMANCE RIGHTS
Unissued ordinary shares of the Group under performance rights at the date of this report are as follows:
GRANT DATE
EXPIRY DATE
EXERCISE PRICE
NUMBER UNDER RIGHTS
29-Apr-21
30-Jun-25
$0.000
5,000,000
23-Jun-21
30-Jun-25
$0.000
500,000
31-Jan-23
30-Jun-26
$0.000
2,250,000
31-Jan-23
30-Jun-27
$0.000
3,750,000
21-Apr-23
30-Jun-26
$0.000
750,000
21-Apr-23
30-Jun-27
$0.000
1,250,000
30-Jun-23
30-Jun-26
$0.000
45,000
30-Jun-23
30-Jun-27
$0.000
75,000
Total
13,620,000
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to
participate in any share issue of the Group or of any other body corporate.
SHARES ISSUED ON THE EXERCISE OF PERFORMANCE RIGHTS
The following ordinary shares of the Group were issued during the year ended 30 June 2024 and up to the
date of this report on the exercise of performance rights granted:
DATE PERFORMANCE RIGHTS GRANTED
EXERCISE PRICE
NUMBER OF SHARES ISSUED
23-Jan-21
$0.000
3,587,500
28-Jan-22
$0.000
879,937
24-Jun-22
$0.000
100,000
21-Jan-22
$0.000
666,668
Total
5,234,005
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DIRECTORS' REPORT
SHARES UNDER SERVICE RIGHTS
Unissued ordinary shares of the Group under service rights at the date of this report are as follows:
GRANT DATE
EXPIRY DATE
EXERCISE PRICE
NUMBER UNDER RIGHTS
07-Feb-22
07-Feb-37
$0.000
31,284
03-Mar-22
08-Feb-321
$0.000
152,264
Total
183,548
1. Expiry date is defined as the date on which vested service rights are converted into ordinary shares following the final vesting date.
No person entitled to exercise the service rights had or has any right by virtue of the service rights to participate
in any share issue of the Group or of any other body corporate.
SHARES ISSUED ON THE EXERCISE OF SERVICE RIGHTS
The following ordinary shares of the Group were issued during the year ended 30 June 2024 and up to the
date of this report on the exercise of service rights granted:
DATE SERVICE RIGHTS GRANTED
EXERCISE PRICE
NUMBER OF SHARES ISSUED
07-Feb-22
$0.000
50,048
03-Mar-22
$0.000
221,488
Total
271,536
INDEMNITY AND INSURANCE OF OFFICERS
The Group has indemnified the Directors and executives of the Group for costs incurred, in their capacity as a
director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Group paid a premium in respect of a contract to insure the Directors and
executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract of
insurance prohibits disclosure of the nature of the liability and the amount of the premium.
INDEMNITY AND INSURANCE OF AUDITOR
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor
of the Group or any related entity against a liability incurred by the auditor.
During the financial year, the Group has not paid a premium in respect of a contract to insure the auditor of the
Group or any related entity.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Information on likely developments in the operations of the Group and the expected results of operations have
been included in the discussion of the Operating and Financial Review.
ENVIRONMENTAL REGULATION AND SUSTAINABILITY
The Group is conscious of its responsibilities to conduct its operations in a way that provides positive social,
environmental and economic outcomes.
During the year, the Company published an Environmental, Social and Governance update, outlining the
Company’s focus on delivering sustainable positive returns to stakeholders, taking into account environment,
social, governance and financial factors. Throughout the year the Company has progressed its efforts in
structuring, managing and reporting on relevant ESG matters.
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DIRECTORS' REPORT
The Group is not subject to any significant environmental regulation under Australian Commonwealth or State
law. The Group recognises that it has the opportunity to further decrease its environmental impact through
travel and energy consumption internal policies.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party for the
purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
NON-AUDIT SERVICES
There were no non-audit services provided during the year ended 30 June 2024.
OFFICERS OF THE GROUP WHO ARE FORMER PARTNERS OF PKF(NS) AUDIT &
ASSURANCE LIMITED PARTNERSHIP
There are no officers of the Group who are former partners of PKF(NS) Audit & Assurance Limited Partnership.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities
and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in
accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest
dollar.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001
is set out immediately after this Directors' report.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the Directors:
_______________________________
Matt Davey
Chairman
Date: 30 August 2024
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Auditor's Independence Declaration
AUDITOR'S
INDEPENDENCE
DECLARATION
AUDITOR'S INDEPENDENCE DECLARATION
For personal use only
BetMakers Technology Group Limited
ACN: 164 521 395
Auditor’s Independence Declaration under section 307C of the Corporations Act 2001
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for
the audit of BetMakers Technology Group Limited for the year ended 30 June 2024, I declare that, to
the best of my knowledge and belief, there have been:
(i) No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(ii) No contraventions of any applicable code of professional conduct in relation to the audit.
PKF
PAUL PEARMAN
PARTNER
30 AUGUST 2024
SYDNEY, NSW
PKF(NS) Audit & Assurance Limited Partnership is a member of PKF Global, the network of member firms of PKF
International Limited, each of which is a separately owned legal entity and does not accept any responsibility or
liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a
scheme approved under Professional Standards Legislation.
PKF(NS) Audit & Assurance Limited Partnership
ABN 91 850 861 839
755 Hunter Street, Newcastle West NSW 2302
Level 8, 1 O’Connell Street, Sydney NSW 2000
Newcastle T: +61 2 4962 2688 F: +61 2 4962 3245
Sydney T: +61 2 8346 6000 F: +61 2 8346 6099
info@pkf.com.au
www.pkf.com.au
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FINANCIAL
STATEMENTS
The following Statements should be read in conjunction with the accompanying notes.
FINANCIAL STATEMENTS
Financial Statements
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Statement of Profit or Loss and Other Comprehensive Income
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
The below Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
Consolidated
NOTE
2024
$'000
2023
$'000
Revenue
5
95,203
95,027
Cost of goods sold
(37,801)
(35,851)
Gross margin
57,402
59,176
Other income
6
1,629
8,686
Interest revenue
3
6
EXPENSES
Employee benefits expense
7
(45,443)
(64,408)
Professional fees
(5,847)
(7,174)
Administration expenses
(5,672)
(8,107)
IT expenses
(5,914)
(6,875)
Occupancy expenses
(1,316)
(1,552)
Depreciation and amortisation expense
(12,196)
(11,793)
Impairment of non-current assets
13
(238)
(8,870)
Impairment of receivables
10
(657)
-
Share-based payments expense
34
1,916
(8,349)
Other expenses
7
(1,077)
(3,490)
Finance costs
7
(447)
(649)
Loss before income tax benefit
(17,857)
(53,399)
Income tax benefit
8
(20,810)
14,618
Loss after income tax benefit for the year attributable to the owners of
BetMakers Technology Group Ltd
(38,667)
(38,781)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
20
10
1,135
Other comprehensive income for the year, net of tax
10
1,135
Total comprehensive loss for the year attributable to the owners of
BetMakers Technology Group Ltd
(38,657)
(37,646)
NOTE
2024
CENTS
2023
CENTS
Basic loss per share
33
(4.03)
(4.16)
Diluted loss per share
33
(4.03)
(4.16)
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Statement of Financial Position
STATEMENT OF FINANCIAL POSITION
The below Statement of Financial Position should be read in conjunction with the accompanying notes.
Consolidated
NOTE
2024
$'000
2023
$'000
ASSETS
CURRENT ASSETS
Cash and cash equivalents
9
29,331
41,041
Trade and other receivables
10
14,156
27,642
Finished goods
3,739
4,170
Other assets
1,673
2,474
Total current assets
48,899
75,327
NON-CURRENT ASSETS
Property, plant and equipment
11
24,432
28,365
Right-of-use assets
12
2,887
4,331
Intangible assets
13
59,130
56,706
Deferred tax asset
8
13,885
34,024
Defined benefits asset
14
1,420
792
Total non-current assets
101,754
124,218
Total assets
150,653
199,545
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
15
31,764
35,079
Contract liabilities
16
1,470
1,848
Lease liabilities
17
1,556
1,401
Income tax
-
472
Employee benefits
18
2,420
2,343
Provisions
-
651
Other financial liabilities
-
3,500
Total current liabilities
37,210
45,294
NON-CURRENT LIABILITIES
Lease liabilities
17
1,599
3,308
Employee benefits
18
290
220
Provisions
-
127
Total non-current liabilities
1,889
3,655
Total liabilities
39,099
48,949
Net Assets
111 ,554
150,596
EQUITY
Issued capital
19
305,189
300,009
Reserves
20
9,903
15,896
Accumulated losses
(203,538)
(165,309)
Total equity
111 ,554
150,596
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Statement of Changes in Equity
STATEMENT OF CHANGES IN EQUITY
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
CONSOLIDATED
ISSUED
CAPITAL
$'000
RESERVES
$'000
ACCUMULATED
LOSSES
$'000
TOTAL EQUITY
$'000
Balance at 1 July 2022
252,486
69,521
(132,721)
189,286
Loss after income tax benefit for the year
-
-
(38,781)
(38,781)
Other comprehensive income for the year, net of tax
-
1,135
-
1,135
Total comprehensive loss for the year
-
1,135
(38,781)
(37,646)
Transactions with owners in their capacity as owners:
Share-based payments (note 34)
-
8,349
-
8,349
Exercise of options
59,586
(56,916)
-
2,670
Share-based payments - cancelled options
-
(6,193)
6,193
-
Share buy-back
(12,063)
-
-
(12,063)
Balance at 30 June 2023
300,009
15,896
(165,309)
150,596
CONSOLIDATED
ISSUED
CAPITAL
$'000
RESERVES
$'000
ACCUMULATED
LOSSES
$'000
TOTAL EQUITY
$'000
Balance at 1 July 2023
300,009
15,896
(165,309)
150,596
Loss after income tax expense for the year
-
-
(38,667)
(38,667)
Other comprehensive income for the year, net of tax
-
10
-
10
Total comprehensive loss for the year
-
10
(38,667)
(38,657)
Transactions with owners in their capacity as owners:
Share-based payments (note 34)
-
(1,916)
-
(1,916)
Exercise of options
5,180
(3,649)
-
1,531
Share-based payments - cancelled options
-
(438)
438
-
Balance at 30 June 2024
305,189
9,903
(203,538)
111,554
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Statement of Cash Flows
STATEMENT OF CASH FLOWS
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
Consolidated
NOTE
2024
$'000
2023
$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
104,178
99,083
Payments to suppliers and employees
(98,511)
(115,339)
Payments for deal advisory services
7
-
(3,419)
Payment in relation to business transactions
(5,506)
(5,821)
Interest received
3
6
Government grants
-
247
Interest and other finance costs paid
(447)
(649)
Movement in customer operational funds held
3,854
1,810
Income taxes paid
(364)
(182)
Net cash from/(used in) operating activities
31
3,208
(24,264)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of business, net of cash acquired
(3,236)
(2,802)
Payments for property, plant and equipment
(1,889)
(7,162)
Payments for intangibles
(6,348)
(1,062)
Net cash used in investing activities
(11,473)
(11,026)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
19
-
2,670
Payments for share buy-backs
19
-
(12,096)
Repayment of lease liabilities
(2,685)
(2,309)
Net cash used in financing activities
(2,685)
(11,735)
Net decrease in cash and cash equivalents
(10,950)
(47,025)
Cash and cash equivalents at the beginning of the financial year
41,041
87,550
Effects of exchange rate changes on cash and cash equivalents
(760)
516
Cash and cash equivalents at the end of the financial year
9
29,331
41,041
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NOTES TO THE
FINANCIAL
STATEMENTS
The following notes are an accompaniment to the Statements on the previous pages.
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements
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NOTE 1. GENERAL INFORMATION
The financial statements cover BetMakers Technology Group Ltd as a group consisting of BetMakers Technology Group
Ltd (the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year (referred to in these
financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is BetMakers
Technology Group Ltd's functional and presentation currency.
BetMakers Technology Group Ltd is a listed public company limited by shares, incorporated and domiciled in Australia.
Its registered office and principal place of business is:
Level 4
189 Flinders Lane
Melbourne, VIC 3000
A description of the nature of the Group's operations and its principal activities are included in the Directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 August 2024.
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies that are material to the Group are set out either in the respective notes or below. The accounting
policies adopted are consistent with those of the previous financial year, unless otherwise stated.
NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption
of these Accounting Standards and Interpretations did not have any material impact on the financial performance or
position of the Group during the financial year ended 30 June 2024.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations adopted during the year are most relevant to the Group:
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of
Accounting Estimates
AASB 2021-2 was issued in March 2021 and is applicable to annual periods beginning on or after 1 January 2023.
This standard amends AASB Standards to improve accounting policy disclosures so that they provide more useful
information to investors and users of the financial statements and clarifies the distinction between accounting policies
and accounting estimates.
BASIS OF PREPARATION
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities.
HISTORICAL COST CONVENTION
The financial statements have been prepared under the historical cost convention, except for, contingent consideration
and defined contribution benefit plan.
CRITICAL ACCOUNTING ESTIMATES
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 3.
PARENT ENTITY INFORMATION
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only.
Supplementary information about the parent entity is disclosed in note 28.
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NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of BetMakers Technology
Group Ltd as at 30 June 2024 and the results of all subsidiaries for the year then ended.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly
in equity attributable to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
Group recognises the fair value of the consideration received and the fair value of any investment retained together
with any gain or reduction in profit or loss.
FOREIGN CURRENCY TRANSLATION
The financial statements are presented in Australian dollars, which is BetMakers Technology Group Ltd's presentation
currency.
FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are translated into the Company's functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
FOREIGN OPERATIONS
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the
average exchange rates, which this approximate the rates at the dates of the transactions, for the period. All resulting
foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in
equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
CURRENT AND NON-CURRENT CLASSIFICATION
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is
no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
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NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)
INVENTORIES
Finished goods comprises of terminals to facilitate taking bets located at racetrack throughout the US, and spare parts
to service terminals sold to customers which is stated at the lower of cost and net realisable value on a ‘first in, first out’
basis.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
AASB 18 PRESENTATION AND DISCLOSURE IN FINANCIAL STATEMENTS
This standard is applicable to annual reporting periods beginning on or after 1 January 2027, with early adoption
permitted. The standard replaces AASB 101 ‘Presentation of Financial Statements’, although many of the requirements
have been carried forward unchanged and is accompanied by limited amendments to the requirements in AASB 107
‘Statement of Cash Flows’. The standard requires income and expenses to be classified into five categories: ‘Operating’
(residual category if income and expenses are not classified into another category), ‘Investing’, ‘Financing’, ‘Income
taxes’ and ‘Discontinued operations’. The standard introduces two mandatory sub-totals: ‘Operating profit’ and ‘Profit
before finance and income taxes’. There are also new disclosure requirements for ‘management-defined performance
measures’, such as earnings before interest, taxes, depreciation and amortisation (‘EBITDA’) or ‘adjusted profit’. The
standard provides enhanced guidance on how to organise and group information (aggregation and disaggregation)
in the financial statements and whether to provide it in the primary financial statements or in the notes. The Group
will adopt this standard from 1 July 2027 and it is expected that there will be a significant change to the layout of the
statement of profit or loss.
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET MANDATORY OR EARLY
ADOPTED
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2024. The
Group's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to
the Group, are set out below.
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-Current and AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with
Covenants
AASB 2020-1 was issued in March 2020 and is applicable to annual periods beginning on or after 1 January 2024, as
extended by AASB 2020-6. Early adoption is permitted. AASB 2022-6 was issued in December 2022 and is applicable
to annual periods beginning on or after 1 January 2024. Early adoption is permitted where AASB 2020-1 is also early
adopted.
These standards amend AASB 101 ‘Presentation of Financial Statements’ to clarify requirements for the presentation
of liabilities in the statement of financial position as current or non-current. The amendments clarify that a liability is
classified as non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for
at least 12 months after the reporting period. If the deferral right is subject to the entity complying with covenants in the
loan arrangement based on information up to and including reporting date, the deferral right will exist where the entity
is able to comply with the covenant on or before the end of the reporting date even if compliance is assessed after
the reporting date. The deferral right will be deemed to exist at reporting date if the entity is required to comply with
the covenant only after the reporting date based on post-reporting date information. Additional disclosure is required
about loan arrangements classified as non-current liabilities in such circumstances which enables users of financial
statements to understand the risk that the liabilities could become repayable within twelve months after the reporting
period. Classification of a liability as non-current is unaffected by the likelihood that the entity will exercise its right to
defer settlement of the liability for at least 12 months after the reporting date or even if the entity settles the liability prior
to issue of the financial statements. The meaning of settlement of a liability is also clarified. The Group does not expect
these amendments to have a material impact on the Group’s presentation of liabilities.
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NOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements
and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations of
future events, management believes to be reasonable under the circumstances. The resulting accounting judgements
and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective
notes) within the next financial year are discussed below.
SHARE-BASED PAYMENT TRANSACTIONS
The Group measures the cost of equity-settled transactions with employees and third parties by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined by using either the
Binomial or Black-Scholes model, depending on the equity-settled transaction, and takes into account the terms and
conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-
settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity.
ALLOWANCE FOR EXPECTED CREDIT LOSSES
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based
on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall
expected credit loss rate for each group. These assumptions include recent sales experience, historical collection rates
and forward-looking information that is available. The allowance for expected credit losses, as disclosed in note 10, is
calculated based on the information available at the time of preparation. The actual credit losses in future years may be
higher or lower.
GOODWILL
The Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether
goodwill has suffered any impairment, in accordance with the stated accounting policy. The recoverable amounts of
cash-generating units have been determined based on value-in-use calculations. These calculations require the use of
assumptions, including estimated discount rates based on the current cost of capital and growth rates of the estimated
future cash flows.
INTERNALLY GENERATED INTANGIBLE ASSETS - SOFTWARE
Costs incurred during the research phase are expensed as incurred, while costs incurred during the development
phase are capitalised. The determination of whether a project is in the research or development phase involves
significant judgment. Additionally, the estimation of the proportion of staff time attributable to development activities,
as opposed to maintenance or operational tasks, requires careful consideration. These estimates and assumptions are
reviewed periodically and adjusted as necessary.
RECOVERABILITY OF DEFERRED TAX ASSETS
Deferred tax assets are recognised for tax losses and deductible temporary differences only if the Group considers
it is probable that future taxable amounts will be available to utilise those temporary differences and losses, and that
the Company continues to meet the Same Business Test and Similar Business Test rules as applicable. With changes
to corporate tax rates in Australia in future financial years, there is judgement regarding the tax rate expected to apply
when assets are recovered. Refer to note 8 for further details during the year.
DEFINED BENEFIT SCHEME
The Group operates a defined benefits pension scheme. A liability or asset in respect of defined benefit superannuation
plans is recognised in the statement of financial position and is measured at the present value of the defined
benefit obligation at the reporting date less the fair value of the superannuation fund's assets at that date and any
unrecognised past service cost. The present value of the defined benefit obligation is based on expected future
payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries
using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service.
The independent actuaries utilise a number of data points to determine the present value of the scheme's liability at
each reporting date. Any change in the value of the net asset/(liability) is accounted for in the statement of profit or loss
during the period in which it arises. Refer to note 14.
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NOTE 4. OPERATING SEGMENTS
IDENTIFICATION OF REPORTABLE OPERATING SEGMENTS
The Group operates in two segments; Global Betting Services and Global Tote. This is based on the internal reports that
are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')
in assessing performance and in determining the allocation of resources.
During the year, the composition of the operating segments was realigned to better reflect how the Group’s CODM
assesses performance and allocates Group resources. As a result, the Global Racing Network was aggregated within
the Global Betting Services segment. eBet Technologies was formally disclosed within Global Betting Services and is
now within the Global Tote segment. The new structure aligns the segment reporting with BetMakers' internal CODM
reporting, ASX market releases and management reporting structure.
The Group has restated the previously reported segment information for the year ended 30 June 2024.
The information reported to the CODM is on at least a monthly basis. The financial information presented in these
financial statements are the same as that presented to the CODM. Refer to note 5 for geographical information.
TYPES OF PRODUCTS AND SERVICES
The principal products and services of each of these operating segments are as follows:
GLOBAL BETTING
SERVICES
The Group provides customers with a variety of racing software, data, and analytical
tools. This includes basic race data such as pricing, runners and form, as well as
analytical tools to consume and leverage the data, and wagering tools such as
platforms and managed trading services. It also assists racing bodies and rights
holders in producing and distributing race content. This includes services such as
barrier technology, official price calculation, vision and pricing distribution.
GLOBAL TOTE
This includes the provision of tote software and integrations to facilitate tote liquidity
and resulting.
MAJOR CUSTOMERS
There were no customers that represented more than 10% of revenue at the year ended 30 June 2024 and 30 June
2023.
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NOTE 4. OPERATING SEGMENTS (CONTINUED)
OPERATING SEGMENT INFORMATION
CONSOLIDATED - 2024
GLOBAL BETTING
SERVICES
$'000
GLOBAL TOTE
$'000
TOTAL
$'000
REVENUE
Sales to external customers
40,433
54,770
95,203
Total revenue
40,433
54,770
95,203
SEGMENT RESULT
(5,508)
12,276
6,768
Depreciation and amortisation expense
(3,318)
(8,645)
( 1 1 ,963)
Impairment of intangibles
(238)
-
(238)
Impairment of receivables
(566)
(91)
(657)
(Loss)/profit before income tax expense
(9,630)
3,540
(6,090)
UNALLOCATED SEGMENT RESULTS
(13,177)
Depreciation and amortisation expense
(233)
Net finance costs
(273)
Share-based payment expense
1,916
Loss before income tax expense
(17,857)
Income tax expense
(20,810)
Loss after income tax expense
(38,667)
ASSETS
Segment assets
48,844
72,834
121,678
Unallocated assets
28,975
Total assets
150,653
LIABILITIES
Segment liabilities
6,886
25,197
32,083
Unallocated liabilities
7,016
Total liabilities
39,099
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NOTE 4. OPERATING SEGMENTS (CONTINUED)
CONSOLIDATED - 2023 - RESTATED1
GLOBAL BETTING
SERVICES
$'000
GLOBAL TOTE
$'000
TOTAL
$'000
REVENUE
Sales to external customers
41,843
53,184
95,027
Total revenue
41,843
53,184
95,027
SEGMENT RESULT
(4,914)
574
(4,340)
Depreciation and amortisation
(3,995)
(7,565)
(11,560)
Impairment expense
(8,870)
-
(8,870)
Loss before income tax expense
(17,779)
(6,991)
(24,770)
UNALLOCATED SEGMENT RESULTS
(19,758)
Depreciation and amortisation
(233)
Net finance costs
(289)
Share options expenses
(8,349)
Loss before income tax benefit
(53,399)
Income tax benefit
14,618
Loss after income tax benefit
(38,781)
ASSETS
Segment liabilities
44,507
70,418
114,925
Unallocated assets
84,620
Total assets
199,545
LIABILITIES
Segment liabilities
7,495
30,344
37,839
Unallocated liabilities
11,110
Total liabilities
48,949
1. Comparative information was adjusted to reflect the change in segments. Refer to the opening of this note for further details.
ACCOUNTING POLICY FOR OPERATING SEGMENTS
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the CODM. Management approach is in line with the respective accounting
standards used throughout this report. The CODM is responsible for the allocation of resources to operating segments
and assessing their performance.
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NOTE 5. REVENUE
Consolidated
2024
$'000
2023
$'000
Revenue from contracts with customers
95,203
95,027
Total revenue
95,203
95,027
DISAGGREGATION OF REVENUE
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2024
$'000
2023
$'000
MAJOR PRODUCT/SERVICES LINES
Global Betting Services1
40,433
41,843
Global Tote
54,770
53,184
95,203
95,027
GEOGRAPHICAL REGIONS
Australia and New Zealand
31,785
33,729
United States of America
35,936
36,086
United Kingdom and Europe
15,374
11,036
Rest of the world
12,108
14,176
95,203
95,027
TIMING OF REVENUE RECOGNITION
Transferred at a point in time
88,809
87,902
Transferred over time
6,394
7,125
95,203
95,027
1. Comparative information was adjusted to reflect the change in segments. Refer to note 4 for further details.
GLOBAL BETTING SERVICES
Global Betting Services ('GBS') revenue is recognised in the profit or loss once the service has been rendered.
The provision of GBS includes the provision of racing data to customers, the provision of analytical tools to assist
in consuming racing data and wagering products to bookmakers such as platforms and managed trading services.
Revenue is derived as a fixed fee or a percentage of turnover / profit derived from the services provided. Revenue is
therefore recognised in-line with the delivery of services, based on the contracted fee or reported turnover / profit.
GLOBAL TOTE
Global tote revenue is recognised in the profit or loss once the service has been rendered. The provision of Global
tote services includes the provision of tote software and integrations to facilitate tote liquidity and resulting. Revenue is
derived as a fixed fee or a percentage of turnover derived from the services provided. Revenue is therefore recognised
in-line with the delivery of services, based on the contracted fee or reported turnover.
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NOTE 6. OTHER INCOME
Consolidated
2024
$'000
2023
$'000
Net foreign exchange gain
646
1,186
Fair value gain on contingent consideration (notes 19 and 23)
218
7,500
Bargain on purchase (note 29)
765
-
Other income
1,629
8,686
NOTE 7. EXPENSES
Consolidated
Loss before income tax includes the following specific expenses:
2024
$'000
2023
$'000
EMPLOYEE BENEFITS
Employee benefits expense
42,563
61,267
Defined benefits contribution superannuation expense
2,880
3,141
Total employee benefits
45,443
64,408
FINANCE COSTS
Interest and finance charges paid/payable on lease liabilities
227
395
Other finance costs
220
254
Finance costs expensed
447
649
OTHER EXPENSES
Deal costs
-
3,419
Others
811
71
Sales and property taxes
266
-
1,077
3,490
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NOTE 8. INCOME TAX
Consolidated
2024
$'000
2023
$'000
INCOME TAX BENEFIT
Current tax
831
770
Deferred tax - origination and reversal of temporary differences
19,615
(15,570)
Foreign tax paid
364
182
Aggregate income tax expense/(benefit)
20,810
(14,618)
Deferred tax included in income tax expense/(benefit) comprises:
Decrease/(increase) in deferred tax assets
19,615
(15,570)
NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE/(BENEFIT) AND TAX
AT THE STATUTORY RATE
Loss before income tax (expense)/benefit
(17,857)
(53,399)
Tax at the statutory tax rate of 30%
(5,357)
(16,020)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
(575)
2,505
Derecognition of deferred tax asset on tax losses
25,230
-
Sundry items
1,502
(1,943)
20,800
(15,458)
Difference in overseas tax rates
10
840
Income tax benefit
20,810
(14,618)
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NOTE 8. INCOME TAX (CONTINUED)
Consolidated
2024
$'000
2023
$'000
DEFERRED TAX ASSET
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Tax losses
12,230
32,521
Property, plant and equipment
(1,356)
(2,597)
Accrued expenses
362
455
Superannuation
608
684
IRC 174 amortisation
1,917
1,459
Other items
(151)
847
13,610
33,369
Amounts recognised in equity:
Transaction costs on share issue
275
655
Deferred tax asset
13,885
34,024
Movements:
Opening balance
34,024
18,454
Credited/(charged) to profit or loss
(19,615)
15,570
Credited/(charged) to equity
275
655
Adjustment recognised for prior periods
(610)
(886)
Foreign currency
(189)
231
Closing balance
13,885
34,024
During the year, the Group derecognised a deferred tax asset amounting to $25.2 million. The derecognition was
primarily due to a reassessment of the likelihood of future taxable profits, which are necessary for the utilization of
the deferred tax asset. The potential tax benefit for losses of $7.8 million has not been recognised in the statement of
financial position. These tax losses can be utilised in the future when there is future taxable profit available.
ACCOUNTING POLICY FOR INCOME TAX
Income tax for the period is the tax payable on that period's taxable income based on the applicable income tax rate for
each jurisdiction, adjusted by changes in deferred tax attributable to temporary differences, unused tax losses and the
adjustment recognised for prior periods, where applicable.
ACCOUNTING POLICY FOR DEFERRED TAX
Deferred tax assets and liabilities are recognised for tax losses and temporary differences at the tax rates expected to
apply when the assets are recovered or liabilities are settled, except for (i) when the deferred tax asset or liability arises
from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and
that, at the time of the transaction, affects neither the accounting nor taxable profits; or (ii) when the taxable temporary
difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of
recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets recognised
are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount
to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there
are future taxable profits available to recover the asset.
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NOTE 8. INCOME TAX (CONTINUED)
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset and they relate
to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle
simultaneously.
TAX CONSOLIDATED GROUP
BetMakers Technology Group Ltd (the 'head entity') and its wholly-owned Australian subsidiaries have formed an
income tax consolidated group ('tax group') under the tax consolidation regime. Each entity in the tax group continues
to account for their own current and deferred tax amounts. The tax group has applied the 'group allocation' approach in
determining the appropriate amount of taxes to allocate to group members. In addition to its own tax amounts, the head
entity also recognises the tax arising from unused tax losses and tax credits assumed from each subsidiary in the tax
group.
Assets or liabilities arising under tax funding agreements are recognised as amounts receivable from or payable to
other entities in the tax group. The tax funding arrangement ensures that the intercompany charge equals the current
tax liability or benefit of each tax group member, resulting in neither a contribution by the head entity to the subsidiaries
nor a distribution by the subsidiaries to the head entity.
NOTE 9. CASH AND CASH EQUIVALENTS
Consolidated
2024
$'000
2023
$'000
CURRENT ASSETS
Cash at bank
14,865
30,103
Restricted cash
14,466
10,938
29,331
41,041
ACCOUNTING POLICY FOR CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.
Restricted accounts represent cash deposited by a customer to be used on betting activities and the Group maintains
separate bank accounts to segregate players funds held from the Group bank accounts and Group funds. The Group
funds are unrestricted and available for use by the Group. The balance of the player cash accounts held is sufficient to
settle the player cash liability disclosed in note 15.
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NOTE 10. TRADE AND OTHER RECEIVABLES
Consolidated
2024
$'000
2023
$'000
CURRENT ASSETS
Trade receivables
12,629
15,447
Less: Allowance for expected credit losses
(2,283)
(1,626)
10,346
13,821
Other receivables
3,193
13,135
Rental bonds
492
488
Goods and services tax ('GST') receivable
125
198
3,810
13,821
14,156
27,642
NON-CURRENT ASSETS
Employee Share Loan receivable
772
772
Less: Allowance for expected credit losses
(772)
(772)
14,156
27,642
Employee Share Loans were extended to select employees in March 2015 for the purpose of purchasing shares in OM
Group Holdings (the parent entity prior to IPO). The loans are repayable upon receipt of dividends or sale of shares.
ALLOWANCE FOR EXPECTED CREDIT LOSSES
The Group has recognised an expense of $657,000 (2023: $nil) in the profit or loss in respect of the expected credit
losses for the year ended 30 June 2024.
The Group recognised an expense of $5,092,000 in the profit or loss in respect of the expected credit losses for the
period ended 31 December 2023. The amount related to two customers and reflected the Company’s assessment
of the outstanding balances as at 31 December 2023. The Company kept discussions with both customers exploring
recovery of the outstanding amounts which was recovered during the second period as at 30 June 2024.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
EXPECTED
CREDIT LOSS
RATE
2024
%
EXPECTED
CREDIT LOSS
RATE
2023
%
CARRYING
AMOUNT
2024
$'000
CARRYING
AMOUNT
2023
$'000
ALLOWANCE
FOR
EXPECTED
CREDIT
LOSSES
2024
$'000
ALLOWANCE
FOR
EXPECTED
CREDIT
LOSSES
2023
$'000
Not overdue
-
-
7,668
10,342
-
-
0 to 3 months overdue
-
-
2,242
2,616
-
-
3 to 6 months overdue
86.60%
65.32%
2,719
2,489
2,283
1,626
Over 2 years overdue
100.00%
100.00%
772
772
772
772
13,401
16,219
3,055
2,398
The Group continues to closely monitor debt recovery whilst customers deal with changes in significant global
economic conditions. The Group has maintained communication with all customers and is yet to see any material
increase in delayed payments or customers inability to make payment.
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NOTE 10. TRADE AND OTHER RECEIVABLES (CONTINUED)
Movements in the allowance for expected credit losses are as follows:
Consolidated
2024
$'000
2023
$'000
Opening balance
2,398
2,390
Additional provisions recognised
657
8
Closing balance
3,055
2,398
ACCOUNTING POLICY FOR TRADE AND OTHER RECEIVABLES
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement
within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected
loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
NOTE 11. PROPERTY, PLANT AND EQUIPMENT
Consolidated
2024
$'000
2023
$'000
NON-CURRENT ASSETS
Leasehold improvements - at cost
499
499
Less: Accumulated depreciation
(261)
(161)
238
338
Plant and equipment - at cost
31,972
31,338
Less: Accumulated depreciation
(8,014)
(3,815)
23,958
27,523
Computer equipment - at cost
835
798
Less: Accumulated depreciation
(669)
(431)
166
367
Furniture and fittings - at cost
323
309
Less: Accumulated depreciation
(253)
(172)
70
137
24,432
28,365
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NOTE 11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
RECONCILIATIONS
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
CONSOLIDATED
LEASEHOLD
IMPROVEMENTS
$'000
PLANT &
EQUIPMENT
$'000
COMPUTER
EQUIPMENT
$'000
FURNITURE
FITTINGS
$'000
TOTAL
$'000
Balance at 1 July 2022
418
23,729
503
175
24,825
Additions
-
5,508
281
83
5,872
Exchange differences
22
312
(5)
12
341
Depreciation expense
(102)
(2,026)
(412)
(133)
(2,673)
Balance at 30 June 2023
338
27,523
367
137
28,365
Additions
-
616
36
15
667
Additions through business
combinations (note 29)
-
3
-
-
3
Disposals
-
(23)
-
-
(23)
Exchange differences
-
36
-
1
37
Depreciation expense
(100)
(4,197)
(237)
(83)
(4,617)
Balance at 30 June 2024
238
23,958
166
70
24,432
The Company has invested in on-track and in-venue racing hardware, primarily for use in the US market. During the
financial year, the Company recognised assets additions of $469,589 in relation to hardware acquired primarily for use
in the US market. As at 30 June 2024, the Company had outstanding work-in-progress payments due of $3,600,000.
These payments are due upon suppliers meeting contractual progress milestones.
ACCOUNTING POLICY FOR PROPERTY, PLANT AND EQUIPMENT
Plant and equipment is stated at historical cost less accumulated depreciation and impairment.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
over their expected useful lives as follows:
LEASEHOLD IMPROVEMENTS
Lease term of 3 - 5 years
PLANT AND EQUIPMENT
5 years
COMPUTER EQUIPMENT
2.5 years
FURNITURE AND FITTINGS
5 years
NOTE 12. RIGHT-OF-USE ASSETS
Consolidated
2024
$'000
2023
$'000
NON-CURRENT ASSETS
Land and buildings - right-of-use
6,590
6,565
Equipment - right-of-use
72
57
Less: Accumulated depreciation
(3,775)
(2,291)
2,887
4,331
The Group leases land and buildings for its offices of between two to five years. The leases have various escalation
clauses. On renewal, the terms of the leases are renegotiated. The Group leases photocopier office equipment. These
leases are low-value, so have been expensed as incurred and not capitalised as right-of-use assets. The group also
leases equipment under agreements of between one to three years.
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NOTE 12. RIGHT-OF-USE ASSETS (CONTINUED)
RECONCILIATIONS
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
CONSOLIDATED
RIGHT-OF-USE ASSETS
$'000
Balance at 1 July 2022
4,873
Additions
1,128
Lease modifications
(308)
Exchange differences
117
Depreciation expense
(1,479)
Balance at 30 June 2023
4,331
Remeasurements
120
Exchange differences
14
Depreciation expense
(1,578)
Balance at 30 June 2024
2,887
ACCOUNTING POLICY FOR RIGHT-OF-USE ASSETS
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where
included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the
underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the group expects to obtain ownership of the leased asset
at the end of the lease term, the asset is depreciated over its estimated useful life. Right-of use assets are subject to
impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or
loss as incurred.
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NOTE 13. INTANGIBLES
Consolidated
2024
$'000
2023
$'000
NON-CURRENT ASSETS
Goodwill - at cost
32,564
32,564
Less: Impairment
(1,802)
(1,802)
30,762
30,762
Intellectual property - at cost
13,170
11,447
Less: Accumulated amortisation
(971)
(417)
Less: Impairment
(8,870)
(8,870)
3,329
2,160
Customer contracts - at cost
10,500
10,000
Less: Accumulated amortisation
(2,002)
(1,334)
Less: Impairment
(238)
-
8,260
8,666
Software - at cost
37,154
30,808
Less: Accumulated amortisation
(20,375)
(15,690)
16,779
15,118
59,130
56,706
RECONCILIATIONS
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
CONSOLIDATED
GOODWILL
$'000
INTELLECTUAL
PROPERTY
$'000
CUSTOMER
CONTRACTS
$'000
SOFTWARE
$'000
TOTAL
$'000
Balance at 1 July 2022
30,548
10,388
9,333
15,493
65,762
Additions
-
1,000
-
-
1,000
Additions through business
combinations (note 29)
214
-
-
5,786
6,000
Exchange differences
-
50
-
405
455
Impairment of assets
-
(8,870)
-
-
(8,870)
Amortisation expense
-
(408)
(667)
(6,566)
(7,641)
Balance at 30 June 2023
30,762
2,160
8,666
15,118
56,706
Additions1
-
-
-
6,348
6,348
Additions through business
combinations (note 29)
-
1,723
500
-
2,223
Exchange differences
-
-
(1)
93
92
Impairment of assets
(238)
-
(238)
Amortisation expense
-
(554)
(667)
(4,780)
(6,001)
Balance at 30 June 2024
30,762
3,329
8,260
16,779
59,130
1. The addition of $6,384,000 corresponds to capitalised staff costs relating to internally generated intangible asset - software.
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NOTE 13. INTANGIBLES (CONTINUED)
IMPAIRMENT OF ASSETS AND ALLOCATION OF GOODWILL TO CASH-GENERATING UNITS ('CGUs'), TIMING AND
INDICATORS FOR IMPAIRMENT TESTING
At each reporting period, an assessment of the carrying value of non-current assets is performed. AASB 136: Impairment
of Assets, requires an entity to perform a detailed recoverable amount assessment for an asset when any of the
following impairment indicators are present:
• There are observable indications that an asset’s value has declined during the period more than that which would be
expected as a result of the passage of time or normal use;
• Technological, market, economic, or legal environment in which the entity operates has changed or will change with
adverse impact on the entity;
• Market interest rates or other market rates of return on investments have increased during the period and are likely
to have an impact on discount rates;
• Carrying amount of the net assets of the entity is more than its market capitalisation;
• Significant changes with an adverse impact on the entity have taken place during the period impacting the manner or
extent to which an asset is used or expected to be used (restructure etc.); or
• Evidence is available from internal reporting that indicates that the economic performance of an asset is, or will be,
worse than expected.
In addition to the above, goodwill and indefinite life intangible assets (whether in-use or not ready for-use) must be
tested, at least annually, for impairment. As a result, management performed impairment testing at 30 June 2024.
In order to identify an impairment loss, management assessed if there was a relevant indicator or indicators of
impairment, after considering the detailed list of indicators outlined above. As a result of this review, management
considered that there were possible impairment indicators. For example, the Group’s net asset value exceeds its market
capitalisation at 30 June 2024.
As a result of identifying at least one indicator, management calculated the value-in-use of the CGUs to determine the
CGU’s recoverable amount. Value-in-use is defined as the present value of the future cash flows expected to be derived
from the CGUs continuing use. This was then compared to the CGU’s carrying value, and management concluded that
based on the assumptions made, the CGU’s recoverable amounts exceeds the carrying value, and therefore each CGU
does not result in a quantifiable impairment loss at 30 June 2024.
The goodwill was allocated to the following CGUs:
Consolidated
2024
$'000
2023
$'000
Global Betting Services
15,041
15,041
Global Tote
15,721
15,721
30,762
30,762
KEY ASSUMPTIONS:
• The change in composition of operating segments impacted the Group's internal reporting structure and the level
at which performance and goodwill is monitored. This has resulted in a change to the manner in which impairment
testing of goodwill has been performed.
• The Group has reassessed its CGUs from three previously to two in the current reporting period. The CGUs are
defined on a consistent basis with its operating segments.
• Terminal growth rates used are either in line with or do not exceed the forecast long term underlying growth rate in
the Consumer Price Index.
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NOTE 13. INTANGIBLES (CONTINUED)
• Growth rates used to underpin cash-flows during the 5-year projection period approved by the board are based on
an assessment for each CGU of past performance, industry trends, contracts with customers and the market for the
CGUs products.
• Discount rates applied are based on the pre-tax weighted average costs of capital applicable to the relevant CGU.
• Since the half-year, the composition of the CGU was updated to include eBet Technologies into Global Tote from
Global Betting Services. The reallocation of eBet Technologies better aligns the nature of the assets to the Global
Tote CGU. The Group has restated the previously reported segment information for the year ended 30 June 2023.
GLOBAL BETTING SERVICES (GBS) CGU:
The recoverable amount of the cash-generating unit has been determined by a value-in-use calculation using a
discounted future cash flows to be generated from the continuing use of the CGU. The discounted future cash flows are
based on a 5-year projection period approved by the board, together with a terminal value.
The following key assumptions were used in the discounted cash flow model for the GBS CGU:
• Revenue has been determined based on leveraging existing technologies and the embedded racing solution in
international markets.
• Revenue has been derived based on effective management of its existing customer contracts, as well as additional
forecast revenue taking into account managements’ reasonable assessment of the customer pipeline.
• No significant adverse changes to the current operating cost base.
• Based on the above, the recoverable amount of the GBS CGU exceeded the carrying amount of $27.4 million by $2.1
million.
2024
2023
Discount rate
22.1%
12.5%
Terminal growth rate
3.0%
2.5%
SENSITIVITY
As disclosed in note 3, the directors have made judgements and estimates in respect of impairment testing of goodwill
and other indefinite life intangible assets. Should these judgements and estimates not occur the resulting goodwill
carrying amount of these assets may decrease.
The sensitivities are as follows:
Change required for carrying
amount to equal recoverable
amount
2024
2023
Forecasted revenue
0.9%
7.0%
Increase to discount rate
0.9%
6.5%
Changes in the key assumptions on which the recoverable amount of GBS CGU goodwill is based would not cause the
cash-generating unit’s carrying amount to exceed its recoverable amount. If there are any negative changes in the key
assumptions on which the recoverable amount of goodwill is based, this could result in a further impairment charge for
the GBS CGU goodwill.
No impairment charges were identified for the year ended 30 June 2024.
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NOTE 13. INTANGIBLES (CONTINUED)
GLOBAL TOTE (GT) CGU:
The recoverable amount of the cash-generating unit has been determined by a value-in-use calculation using a
discounted future cash flows to be generated from the continuing use of the CGU. The discounted future cash flows are
based on a 5-year projection period approved by the Board, together with a terminal value.
The following key assumptions were used in the discounted cash flow model for the GT CGU:
• Revenue has been derived based on effective management of its existing key customer contracts.
• Delivering on current contracted tote customers such as Rikstoto and Caesars.
• No significant adverse changes to the current operating cost base.
• Based on the above, the recoverable amount of the GT CGU exceeded the carrying amount of $48.0 million by $38.4
million.
2024
2023
Discount rate (pre-tax)
19.5%
12.5%
Terminal growth rate
3.0%
2.5%
SENSITIVITY
As disclosed in Note 3, the directors have made judgements and estimates in respect of impairment testing of goodwill
and other indefinite life intangible assets. Should these judgements and estimates not occur the resulting goodwill
carrying amount of these assets may decrease.
The sensitivities are as follows:
Change required for carrying
amount to equal recoverable
amount
2024
2023
Forecasted revenue
11.2%
18.0%
Increase to discount rate
10.0%
34.0%
Changes in the key assumptions on which the recoverable amount of GT CGU goodwill is based would not cause the
cash-generating unit’s carrying amount to exceed its recoverable amount. If there are any negative changes in the key
assumptions on which the recoverable amount of goodwill is based, this could result in a further impairment charge for
the GT CGU goodwill.
No impairment charges were identified for the year ended 30 June 2024.
ACCOUNTING POLICY FOR GOODWILL
Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for
impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried
at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not
subsequently reversed.
INTELLECTUAL PROPERTY
Intellectual property primarily consists of the cost of acquiring the software code for the wholesale wagering business.
Significant costs associated with the acquisition of additional intellectual property are deferred and amortised on a
straight-line basis over the period of their expected benefit, being their finite life of five years.
CUSTOMER CONTRACTS
Customer contracts acquired in a business combination are amortised on a straight-line basis over the period of their
expected benefit, being their finite life of fifteen years.
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NOTE 13. INTANGIBLES (CONTINUED)
SOFTWARE
Significant costs associated with software purchases are deferred and amortised on a straight-line basis over the period
of their expected benefit, being their finite life of five years.
INTERNALLY GENERATED INTANGIBLE ASSETS - SOFTWARE
Capitalised staff costs is stated at cost and is not amortised until it is ready for use. The costs are transferred to the
relevant class of asset from the time the asset is held ready for use and is then subsequently amortised based on the
class of asset. These costs have been capitalised only if the expenditure can be measured reliably, the product or
process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and
has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or
loss as incurred.
ACCOUNTING POLICY FOR IMPAIRMENT OF OTHER NON-FINANCIAL ASSETS
Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is
the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the
asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped
together to form a cash-generating unit.
NOTE 14. DEFINED BENEFITS ASSET
The Group operates a funded defined benefit scheme in the US and two defined contribution schemes in the US and a
defined contribution scheme in Ireland. Datatote (England) Limited employees also contribute to a defined contribution
scheme. There is no funded defined benefit scheme in Australia.
DEFINED CONTRIBUTION SCHEME
In the UK, employer contributions are set at a maximum of 8% of pensionable salaries. A defined contribution scheme
for non-unionised employees, including eBet, is operated in the US, into which the Group contributes 37.5% of the first
6% of participants contributions. A further defined contribution scheme is available for unionised employees; the Group
does not make contributions into this scheme.
A Registered Retirement Savings Plan (‘RRSP’) exists for employees in Canada. The Group makes contributions to a limit
of 50% of the first 6% of participants contributions.
For employees in Ireland (of which there are 3), the Group contributes between 5% and 12.5% of salary into a defined
contribution scheme.
DEFINED BENEFIT SCHEME
In acquiring the Sportech business, the Group acquired the US defined benefit scheme. This scheme is administered
by an insurance company in the US and provides retirement benefits to employees who are members of a collective
bargaining unit represented by the International Brotherhood of Electrical Workers. Benefits are based on value times
credited service.
The following sets out details in respect of the defined benefit section only.
STATEMENT OF FINANCIAL POSITION AMOUNTS
The amounts recognised in the statement of financial position are determined as follows:
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NOTE 14. DEFINED BENEFITS ASSET (CONTINUED)
Consolidated
2024
$'000
2023
$'000
NON-CURRENT LIABILITIES
Present value of the defined benefit obligation
(7,309)
(7,497)
Fair value of defined benefit plan assets
8,729
8,289
Net asset in the statement of financial position
1,420
792
Weighted average asset allocation:
Equity
-
-
Debt
100%
100%
Real estate
-
-
Other
-
-
Total
100%
100%
RECONCILIATIONS
Consolidated
2024
$'000
2023
$'000
Reconciliation of the present value of the defined benefit obligation, which is partly funded:
Balance at the beginning of the year
(7,497)
(7,822)
Foreign exchange on opening balance
30
(255)
Current service cost
(107)
(109)
Interest cost
(380)
(369)
Loss due to census experience
107
187
Loss due to discount rate changes
129
285
Benefits paid
409
586
Balance at the end of the year
(7,309)
(7,497)
Reconciliation of the fair value of plan assets:
Balance at the beginning of the year
8,289
7,869
Foreign exchange on opening balance
(34)
257
Interest income
443
390
Employer contributions
748
751
Gain due on plan assets
(216)
(131)
Administrative expense
(92)
(261)
Benefits paid
(409)
(586)
Balance at the end of the year
8,729
8,289
Maturity Profile
Year 1
2,046
1,929
Year 2
501
521
Year 3
535
514
Year 4
443
539
Year 5
221
440
Year 6 - 10
1,939
1,906
Year 11+
8,619
9,843
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NOTE 14. DEFINED BENEFITS ASSET (CONTINUED)
The above reconciling movements are translated from the functional currency of USD to AUD at the 30 June 2024
rate of 1.496 (2023: 1.502). There are no funding arrangements that will affect future contributions. The expected
contribution to the plan for the next annual reporting period is expected to be $747,900 (2023: $751,200). The duration
of the benefit obligation is 7.6 years (2023: 7.9 years).
SIGNIFICANT ACTUARIAL ASSUMPTIONS
The figures have been determined by qualified actuaries as at 30 June 2024 using the following assumptions:
Consolidated
2024
$'000
2023
$'000
Discount rate
5.50%
5.25%
Mortality assumption
Pri-2012
Total Dataset
(Employee/
Retiree) with
Scale MP-
2021
Pri-2012
Total Dataset
(Employee/
Retiree) with
Scale MP-
2021
Under the adopted mortality tables, if the future life expectancy were to be decreased by one year the liabilities would
decrease by $14,947 (2023: $15,540).
If the discount rate were to be increased to 6.00% (2023: 5.75%) the liabilities would decrease by $242,201 (2023:
$261,309).
The qualified actuaries that valued the scheme are The Prudential Insurance Company.
RISK EXPOSURE
Through the defined benefits plan, the Group is exposed to a number of risks. The significant risks are detailed below:
Asset volatility
The plan liabilities are calculated using a discount rate set with reference to the Pru Above Mean Curve; If plan assets
underperform this yield, this will create a deficit. The US pension scheme assets are invested in a guaranteed return
fund. The plan purchases annuities under the GR-03607 contract at retirement. Under this contract, annuities are
purchased based on a table of fixed factors that are not subject to the rate environment at retirement, which removes
volatility and risk on asset values.
Changes in the Pru Above Mean Curve
A decrease in the Above Mean Curve will increase plan liabilities.
Life Expectancy
The plan’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an
increase in the plans’ liabilities.
ACCOUNTING POLICY FOR RETIREMENT BENEFIT OBLIGATIONS
The Group has a defined benefit section and a defined contribution section within its plan. A defined contribution plan
is a pension plan under which the Group pays fixed contributions into a separate entity. The Group pays contributions
to privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The contributions are
recognised as an employee benefit expense when they are due. Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in future payments is available.
The defined benefit section provides defined lump sum benefits based on years of service and final average salary.
A liability or asset in respect of defined benefit superannuation plans is recognised in the statement of financial position,
and is measured at the present value of the defined benefit obligation at the reporting date less the fair value of the
superannuation fund's assets at that date and any unrecognised past service cost. The present value of the defined
benefit obligation is based on expected future payments which arise from membership of the fund to the reporting
date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service.
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NOTE 14. DEFINED BENEFITS ASSET (CONTINUED)
Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds
with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised, in
the period in which they occur, in other comprehensive income.
Past service costs are recognised immediately in profit or loss, unless the changes to the superannuation fund are
conditional on the employees remaining in service for a specified period of time ('the vesting period'). In this case, the
past service costs are amortised on a straight-line basis over the vesting period.
NOTE 15. TRADE AND OTHER PAYABLES
Consolidated
2024
$'000
2023
$'000
CURRENT LIABILITIES
Trade payables
5,409
4,069
Accrued expenses
10,729
11,969
Goods and services tax ('GST') payable
415
242
Other payables
642
1,874
Players liabilities
14,569
16,925
31,764
35,079
Refer to note 22 for further information on financial instruments.
ACCOUNTING POLICY FOR TRADE AND OTHER PAYABLES
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
NOTE 16. CONTRACT LIABILITIES
Consolidated
2024
$'000
2023
$'000
CURRENT LIABILITIES
Contract liabilities
1,470
1,848
RECONCILIATION
Reconciliation of the written down values at the beginning and end of the current and previous
financial year are set out below:
Opening balance
1,848
1,029
Revenue recognised
(8,096)
(2,340)
Payments received in advance
7,740
3,104
Additions through business combinations
-
55
Foreign exchange
(22)
-
Closing balance
1,470
1,848
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NOTE 16. CONTRACT LIABILITIES (CONTINUED)
UNSATISFIED PERFORMANCE OBLIGATIONS
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end
of the reporting period was $1,470,000 as at 30 June 2024 ($1,848,000 as at 30 June 2023) and is expected to be
recognised as revenue in future periods as follows:
Consolidated
2024
$'000
2023
$'000
Within 6 months
1,049
1,321
6 to 12 months
281
351
12 to 18 months
140
176
1,470
1,848
NOTE 17. LEASE LIABILITIES
Consolidated
2024
$'000
2023
$'000
CURRENT LIABILITIES
Lease liability
1,556
1,401
NON-CURRENT LIABILITIES
Lease liability
1,599
3,308
3,155
4,709
CONSOLIDATED - 2024
WEIGHTED
AVERAGE
INTEREST
RATE %
1 YEAR OR
LESS
$'000
BETWEEN
1 AND 2
YEARS
$'000
BETWEEN
2 AND 5
YEARS
$'000
OVER 5
YEARS
$'000
REMAINING
CONTRACTUAL
MATURITIES
$'000
INTEREST BEARING - VARIABLE
Lease Liability
8.00%
1,633
1,119
468
194
3,414
CONSOLIDATED - 2023
WEIGHTED
AVERAGE
INTEREST
RATE %
1 YEAR OR
LESS
$'000
BETWEEN
1 AND 2
YEARS
$'000
BETWEEN
2 AND 5
YEARS
$'000
OVER 5
YEARS
$'000
REMAINING
CONTRACTUAL
MATURITIES
$'000
INTEREST BEARING - VARIABLE
Lease Liability
8.00%
1,726
1,586
1,586
294
5,282
ACCOUNTING POLICY FOR LEASE LIABILITIES
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is
remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of
the right-of-use asset is fully written down.
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NOTE 18. EMPLOYEE BENEFITS
Consolidated
2024
$'000
2023
$'000
CURRENT LIABILITIES
Annual leave
1,720
1,787
Long service leave
148
149
Remuneration
263
297
Other
289
110
2,420
2,343
NON-CURRENT LIABILITIES
Long service leave
290
220
2,710
2,563
SHORT-TERM EMPLOYEE BENEFITS
Liabilities for wages and salaries, including non-monetary benefits, annual leave, long service leave and accumulating
sick leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected
to be paid when the liabilities are settled. Non-accumulating sick leave is expensed to profit or loss when incurred.
OTHER LONG-TERM EMPLOYEE BENEFITS
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured as the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the
reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible,
the estimated future cash outflows.
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NOTE 19. ISSUED CAPITAL
Consolidated
2024
SHARES
2023
SHARES
2024
$'000
2023
$'000
Ordinary shares - fully paid
965,114,395
943,541,600
305,189
300,009
MOVEMENTS IN ORDINARY SHARE CAPITAL
DETAILS
DATE
SHARES
ISSUE PRICE
$'000
Balance
1 July 2022
904,456,198
252,486
Exercise of options
10 March 2023
822,533
$0.000
537
Share buy-back
12 July 2022
(209,712)
$0.370
(77)
Share buy-back
13 July 2022
(1,000,000)
$0.380
(383)
Share buy-back
14 July 2022
(226,329)
$0.390
(89)
Share buy-back
15 July 2022
(135,981)
$0.410
(55)
Share buy-back
29 August 2022
(2,200,000)
$0.390
(849)
Share buy-back
30 August 2022
(1,427,978)
$0.400
(576)
Share buy-back
31 August 2022
(2,300,000)
$0.410
(951)
Share buy-back
1 September 2022
(2,599,993)
$0.410
(1,065)
Share buy-back
2 September 2022
(3,350,000)
$0.410
(1,338)
Shares issued
2 September 2022
59,264,352
$0.980
-
Exercise of options
2 September 2022
-
$0.000
58,213
Share buy-back
6 September 2022
(1,200,000)
$0.400
(475)
Share buy-back
7 September 2022
(2,000,000)
$0.390
(788)
Share buy-back
8 September 2022
(5,080,318)
$0.400
(2,040)
Share buy-back
9 September 2022
(1,248,496)
$0.420
(524)
Share buy-back
12 September 2022
(1,404,216)
$0.420
(597)
Exercise of options
21 April 2023
666,666
$0.000
437
Share buy-back
16 September 2022
(1,000,000)
$0.380
(384)
Share buy-back
14 September 2022
(2,743,861)
$0.400
(1,103)
Share buy-back
2 November 2022
(1,000,000)
$0.270
(273)
Share buy-back
31 October 2022
(1,000,000)
$0.350
(354)
Share buy-back
9 December 2022
(500,000)
$0.280
(142)
Exercise of options
28 December 2022
-
$0.000
399
Shares Issued
28 December 2022
8,958,735
$0.000
-
Balance
30 June 2023
943,541,600
300,009
Exercise of options
6 October 2023
4,720,074
$0.090
3,150
Shares issued to Punting Form after achievement
of contingent consideration (note 23)
10 April 2024
15,789,476
$0.095
1,500
Exercise of options
11 April 2024
118,799
$0.636
62
Exercise of options
11 April 2024
666,668
$0.110
436
Shares issued to Form Cruncher after achievement
of contingent consideration (notes 6 and 23) 1
14 May 2024
277,778
$0.091
32
Balance
30 June 2024
965,114,395
305,189
1. During the reporting period, a gain was recognised on the issuance of shares. The shares had a floor price of $0.90 per share, whereas the issue price was $0.091 per
share. The original carrying amount of these shares was $250,000. A gain of $218,000 was recognised in the statement of profit or loss (refer to Note 6).
Shares issued during the year ended 30 June 2024 are in relation to the exercise of options, performance and service
rights.
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NOTE 19. ISSUED CAPITAL (CONTINUED)
ORDINARY SHARES
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to
shareholders should the Company be wound up, in proportions that consider both the number of shares held and the
extent to which those shares are paid up. The fully paid ordinary shares have no par value and the company does not
have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
CAPITAL RISK MANAGEMENT
The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can
provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the group may raise additional capital, adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group is not subject to any financing arrangements covenants.
The capital risk management policy remains unchanged from the 30 June 2023 Annual Report.
ACCOUNTING POLICY FOR ISSUED CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
NOTE 20. RESERVES
Consolidated
2024
$'000
2023
$'000
Foreign currency reserve
4,371
4,361
Share-based payments reserve
5,532
11,535
9,903
15,896
SHARE-BASED PAYMENTS RESERVE
The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their
remuneration, and other parties as part of their compensation for services.
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NOTE 20. RESERVES (CONTINUED)
MOVEMENTS IN RESERVES
Movements in the reserves during the current and previous financial year are set out below:
CONSOLIDATED
FOREIGN
CURRENCY
$'000
SHARE-BASED
PAYMENTS
$'000
TOTAL
$'000
Balance at 1 July 2022
3,226
66,295
69,521
Foreign currency translation
1,135
-
1,135
Share-based payments
-
8,349
8,349
Exercise of options
-
(56,916)
(56,916)
Cancelled options
-
(6,193)
(6,193)
Balance at 30 June 2023
4,361
11,535
15,896
Foreign currency translation
10
-
10
Share-based payments
-
(1,916)
(1,916)
Exercise of options
-
(3,649)
(3,264)
Cancelled options
-
(438)
(438)
Balance at 30 June 2024
4,371
5,532
9,903
NOTE 21. DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year.
NOTE 22. FINANCIAL INSTRUMENTS
FINANCIAL RISK MANAGEMENT OBJECTIVES
The Group's activities expose it to a variety of financial risks, particularly liquidity risk and wagering risk. The Group's
overall risk management program focuses on the unpredictability of wagering liabilities and liquidity.
Risk management is carried out by senior finance executives ('Finance') under policies approved by the Board
of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the Group and
appropriate procedures, controls and risk limits. Finance identifies and evaluates, and hedges financial risks, within the
Group's operating units. Finance reports to the Board on a monthly basis.
MARKET RISK
FOREIGN CURRENCY RISK
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures,
primarily with respect to the Euro, Pound Sterling and the US dollar. Foreign exchange risk arises from transactions
undertaken in foreign currencies, the translation of foreign currency monetary assets and liabilities and from the
translations into Australian dollars of the results and net assets of overseas operations.
The Group continually monitors the foreign currency risks and takes steps, where practical, to ensure that the net
exposure is kept to an acceptable level.
The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
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NOTE 22. FINANCIAL INSTRUMENTS (CONTINUED)
Assets
Liabilities
CONSOLIDATED
2024
$'000
2023
$'000
2024
$'000
2023
$'000
US dollars
5,163
7,258
9,227
7,478
Euros
1,881
1,863
731
731
Pound Sterling
61
106
321
321
Canadian dollars
60
32
23
23
Turkish Lira
5
251
33
33
7,170
9,510
9,960
8,586
The Group had net liabilities denominated in foreign currencies of $2,790,000 as at 30 June 2024 (2023: net assets of
$924,000). Based on this exposure, had the Australian dollars weakened by 5%/strengthened by 5% (2023: weakened
by 5%/strengthened by 5%) against these foreign currencies with all other variables held constant, the Group's profit
before tax for the year would have been $75,780 lower/$75,780 higher (2023: $46,200 lower/$46,200 higher). The
percentage change is the expected overall volatility of the significant currencies, which is based on management's
assessment of reasonable possible fluctuations taking into consideration movements over the last 12 months and the
spot rate at each reporting date. The actual net foreign exchange gain for the year ended 30 June 2024 was $656,000
(2023: net gain of $1,630,000).
PRICE RISK
The Group is not exposed to any price risk.
INTEREST RATE RISK
The Group is not exposed to any significant interest rate risk.
CREDIT RISK
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount,
net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the
financial statements. The Group does not hold any collateral.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this
include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make
contractual payments for a period greater than 1 year.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables
through the use of a provisions matrix which is dynamic based on current and future conditions. These provisions are
considered representative across all customers of the Group based on recent sales experience, historical collection
rates and forward-looking information that is available.
LIQUIDITY RISK
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable. The
Group manages liquidity risk by maintaining adequate cash reserves, raising capital to fund growth and by monitoring
actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
REMAINING CONTRACTUAL MATURITIES
The following tables detail the Group's remaining contractual maturity for its financial liabilities. The tables have been drawn
up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities
are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
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NOTE 22. FINANCIAL INSTRUMENTS (CONTINUED)
CONSOLIDATED - 2024
WEIGHTED
AVERAGE
INTEREST RATE
%
1 YEAR OR
LESS
$'000
BETWEEN 1
AND 2 YEARS
$'000
BETWEEN 2
AND 5 YEARS
$'000
OVER 5 YEARS
$'000
REMAINING
CONTRACTUAL
MATURITIES
$'000
NON-DERIVATIVES
Non-interest bearing
Trade payables
-
5,409
-
-
-
5,409
Other payables
-
642
642
Players liabilities
-
14,569
-
-
-
14,569
Total non-derivatives
20,620
-
-
-
20,620
CONSOLIDATED - 2023
WEIGHTED
AVERAGE
INTEREST RATE
%
1 YEAR OR
LESS
$'000
BETWEEN 1
AND 2 YEARS
$'000
BETWEEN 2
AND 5 YEARS
$'000
OVER 5 YEARS
$'000
REMAINING
CONTRACTUAL
MATURITIES
$'000
NON-DERIVATIVES
Non-interest bearing
Trade payables
-
4,069
-
-
-
4,069
Other payables
-
1,874
-
-
-
1,874
Contingent
consideration
-
3,500
3,500
Players liabilities
-
16,925
-
-
-
16,925
Total non-derivatives
26,368
-
-
-
26,368
The amounts disclosed in the above tables are the maximum amounts allocated to the earliest period in which the
guarantee could be called upon. The Group does not expect these payments to eventuate.
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
NOTE 23. FAIR VALUE MEASUREMENT
FAIR VALUE HIERARCHY
The following tables detail the group's assets and liabilities, measured or disclosed at fair value, using a three level
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
LEVEL 1
Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date
LEVEL 2
Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly
LEVEL 3
Unobservable inputs for the asset or liability
CONSOLIDATED - 2024
LEVEL 1
$'000
LEVEL 2
$'000
LEVEL 3
$'000
TOTAL
$'000
ASSETS
Defined benefits asset (note 14)
-
1,420
-
1,420
Total assets
-
1,420
-
1,420
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NOTE 23. FAIR VALUE MEASUREMENT (CONTINUED)
CONSOLIDATED - 2023
LEVEL 1
$'000
LEVEL 2
$'000
LEVEL 3
$'000
TOTAL
$'000
ASSETS
Defined benefits asset (note 14)
-
792
-
792
Total assets
-
792
-
792
LIABILITIES
Contingent consideration
-
-
3,500
3,500
Total liabilities
-
-
3,500
3,500
There were no transfers between levels during the financial year.
The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their
fair values due to their short-term nature.
The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current
market interest rate that is available for similar financial liabilities.
VALUATION TECHNIQUES FOR FAIR VALUE MEASUREMENTS CATEGORISED WITHIN LEVEL 2 AND LEVEL 3
Contingent consideration represents the obligation to pay additional amounts to vendors in respect of businesses
acquired by the group, subject to certain conditions being met. It is measured at the present value of the estimated
liability. The fair value of contingent consideration is calculated on the expected future cash outflows. Generally, the
contingent consideration is a performance-based payment. These are reviewed at the reporting date to provide the
expected future cash outflows for each contract. Upon completion of the review the future cash outflows are then
discounted to present value using the group’s incremental borrowing rate.
LEVEL 3 ASSETS AND LIABILITIES
Movements in level 3 assets and liabilities during the current and previous financial year are set out below:
CONSOLIDATED
TOTAL
$'000
Balance at 1 July 2022
15,480
Additions
3,000
Payments
(250)
Fair value adjustment (note 6)
(7,500)
Balance at 30 June 2023
3,500
Payments
(1,750)
Payments through issuing shares 'Punting Form' (note 19)
(1,500)
Payments through issuing shares 'Form Cruncher' (note 19)
(32)
Fair value adjustment (note 6)
(218)
Balance at 30 June 2024
-
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NOTE 24. REMUNERATION OF AUDITORS
During the financial year the following fees were paid or payable for services provided by PKF(NS) Audit & Assurance
Limited Partnership, the auditor of the Company, and other audit service providers, for the audit of the subsidiaries.
Consolidated
2024
$
2023
$
AUDIT SERVICES - PKF(NS) AUDIT & ASSURANCE LIMITED PARTNERSHIP
Audit or review of the financial statements - Group
407,499
373,080
AUDIT SERVICES - OTHER
Audit or review of the financial statements - Subsidiaries
160,933
153,538
568,432
526,618
NOTE 25. CONTINGENT LIABILITIES
Management have assessed the Punting Form remaining operational targets at 30 June 2024 to be $Nil.
Except for the above, the group had no other contingent liabilities as at 30 June 2024.
NOTE 26. KEY MANAGEMENT PERSONNEL DISCLOSURES
COMPENSATION
The aggregate compensation made to Directors and other members of KMP of the Group is set out below:
Consolidated
2024
$
2023
$
Short-term employee benefits
1,585,910
1,504,116
Post-employment benefits
98,652
120,521
Share-based payments
1,994,286
6,085,862
3,678,848
7,710,499
NOTE 27. RELATED PARTY TRANSACTIONS
PARENT ENTITY
BetMakers Technology Group Ltd is the parent entity.
SUBSIDIARIES
Interests in subsidiaries are set out in note 30.
KEY MANAGEMENT PERSONNEL
Disclosures relating to key management personnel are set out in note 26 and the remuneration report included in the
Directors' report.
TRANSACTIONS WITH RELATED PARTIES
There were no transactions with related parties during the current and previous financial year.
RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
LOANS TO/FROM RELATED PARTIES
Loans with related parties of $215,848 has been fully provided for as at 30 June 2024 (30 June 2023: $215,848).
TERMS AND CONDITIONS
All transactions were made on normal commercial terms and conditions and at market rates.
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NOTE 28. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Parent
2024
$'000
2023
$'000
Profit/(Loss) after income tax
2,854
(20,496)
Total comprehensive loss
2,854
(20,496)
STATEMENT OF FINANCIAL POSITION
Parent
2024
$'000
2023
$'000
Total current assets
-
-
Total assets
68,303
66,272
Total current liabilities
-
-
Total liabilities
-
-
Equity
Issued capital
305,189
300,009
Share-based payments reserve
5,532
11,535
Accumulated losses
(242,418)
(245,272)
Total equity
68,303
66,272
GUARANTEES ENTERED INTO BY THE PARENT ENTITY IN RELATION TO THE DEBTS OF ITS SUBSIDIARIES
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2024 and 30 June 2023.
CONTINGENT LIABILITIES
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
CAPITAL COMMITMENTS - PROPERTY, PLANT AND EQUIPMENT
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except for
the following:
• Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
• Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
NOTE 29. BUSINESS COMBINATIONS
RACELAB ACQUISITION
On 11 April 2024, the Group acquired assets of RACELAB Pty Ltd ("RACELAB Global'), a leading international supplier
of enhanced racing wagering products and technologies, which was under voluntary administration, for a total
consideration of $1.5 million in cash with a clawback of up to $500,000 dependent on key customer novation within 30
days. In accordance with the requirements of AASB 3 Business Combinations in relation to the ‘concentration test’, the
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NOTE 29. BUSINESS COMBINATIONS (CONTINUED)
transaction has been accounted for as an asset acquisition since substantially all of the fair value of the gross assets
acquired is concentrated in the intellectual property and customer contracts.
This represents a highly strategic acquisition for BetMakers, adding leading race form, preview, and statistics
technology to the BetMakers ecosystem, as well as proprietary fixed odds pricing technology and associated
algorithms. The acquisition also offers potential to further expand its services in the harness and greyhound form
and preview racing sectors and bring new customers. In addition, integrate the RACELAB operations into the Group's
existing global infrastructure, driving new revenues via existing sales channels and continuing to develop upon the
strategic vision of both ProFORM™ and ODDS ENGINE™ technologies.
Details of the acquisition are as follows:
FAIR VALUE
$'000
Intellectual property
1,723
Customer contracts
500
Plant and equipment
3
Net assets acquired
2,226
Bargain on sale
(765)
Acquisition-date fair value of the total consideration transferred
1,461
Representing:
Cash paid or payable to vendor
1,461
ACCOUNTING POLICY FOR BUSINESS COMBINATIONS
The acquisition method of accounting is used to account for business combinations when the acquired set of activities
and assets meets the definition of a business and control is transferred to the Group. To determine whether a set of
activities and assets constitutes a business, the Group has the choice to apply a ‘concentration test’, which is met if
substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of
similar identifiable assets. Alternatively, to determine if a business has been acquired, the Group assesses whether (as a
minimum) an input and substantive process has been acquired and whether there is an ability to produce outputs from
these.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling
interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at
either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed
as incurred to profit or loss.
On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic conditions, the Group's
operating or accounting policies and other pertinent conditions in existence at the acquisition-date.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing
investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is
less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference
is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of
the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the
consideration transferred and the acquirer's previously held equity interest in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional assets or liabilities during the measurement period,
based on new information obtained about the facts and circumstances that existed at the acquisition-date. The
measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer
receives all the information possible to determine fair value.
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NOTE 30. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 2:
Ownership Interest
NAME
PRINCIPAL PLACE OF BUSINESS /
COUNTRY OF INCORPORATION
2024
%
2023
%
Operis Momentus Pty Ltd
Australia
100.00%
100.00%
Global Tote Limited
Alderney
100.00%
100.00%
Global Tote Australia Pty Limited
Australia
100.00%
100.00%
Global Tote Lankan Pvt
Sri Lanka
100.00%
100.00%
BetMakers DNA Pty Ltd
Australia
100.00%
100.00%
Bookies Card Pty Ltd
Australia
100.00%
100.00%
Global Betting Services Pty Ltd
Australia
100.00%
100.00%
Dynamic Odds Pty Ltd
Australia
100.00%
100.00%
Managed Trading Services Pty Ltd
Australia
100.00%
100.00%
OM Apps Pty Ltd
Australia
100.00%
100.00%
OM IP Pty Ltd
Australia
100.00%
100.00%
12Follow Pty Ltd
Australia
100.00%
100.00%
C.D.K. Software Limited
New Zealand
100.00%
100.00%
BetMakers US Inc.
United States of America
100.00%
100.00%
Global Tote, LLC
United States of America
100.00%
100.00%
Global Tote Europe Holdco 1
United Kingdom
100.00%
100.00%
eBet Technologies Inc
United States of America
100.00%
100.00%
Global Tote Canada
Canada
100.00%
100.00%
Datatote (England) Limited
United Kingdom
100.00%
100.00%
Racing Technology Ireland Limited
Ireland
100.00%
100.00%
Sportech France SAS
France
100.00%
100.00%
Sportech Racing Elekronik ve Bilgisayer
Hizmetleri Sangayi Ticaret Limited Sirketi
Turkey
100.00%
100.00%
Autotote Europe GmbH
Germany
100.00%
100.00%
Sportech Racing GmbH
Germany
100.00%
100.00%
ABettorEdge Pty Ltd
Australia
100.00%
100.00%
BetMakers MTS, LLC
United States of America
100.00%
100.00%
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NOTE 31. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH FROM/(USED
IN) OPERATING ACTIVITIES
Consolidated
2024
$'000
2023
$'000
Loss after income tax benefit for the year
(38,667)
(38,781)
Adjustments for:
Depreciation and amortisation
12,196
11,793
Impairment of non-current assets
238
8,870
Impairment of receivables
657
-
Share-based payments
(1,916)
8,349
Gain on valuation of financial liabilities
(218)
(7,500)
Bargain on purchase
(765)
-
Movement in customer operational funds held
3,854
1,810
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
12,829
(12,129)
Decrease/(increase) in finished goods
431
(156)
Decrease/(increase) in deferred tax assets
20,139
(15,570)
Decrease/(increase) in prepayments
801
(380)
Increase/(decrease) in trade and other payables
(3,968)
18,542
Increase/(decrease) in contract liabilities
(378)
765
Increase/(decrease) in provision for income tax
(472)
770
Decrease in employee benefits
(147)
(539)
Increase/(decrease) in other provisions
(778)
637
Decrease in defined benefits asset
(628)
(745)
Net cash from/(used in) operating activities
3,208
(24,264)
NOTE 32. CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
CONSOLIDATED
LEASE
LIABILITY
$'000
Balance at 1 July 2022
5,220
Net cash used in financing activities
(2,309)
Acquisition of land and buildings right-of-use by means of leases
1,128
Lease modifications
(308
Other changes
978
Balance at 30 June 2023
4,709
Net cash used in financing activities
(2,685)
Lease modifications
120
Other changes
1,011
Balance at 30 June 2024
3,155
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NOTE 33. LOSS PER SHARE
Consolidated
2024
$'000
2023
$'000
Loss after income tax attributable to the owners of BetMakers Technology Group Ltd
(38,667)
(38,781)
NUMBER
NUMBER
Weighted average number of ordinary shares used in calculating basic earnings per share
960,090,235
933,244,414
Weighted average number of ordinary shares used in calculating diluted earnings per share
960,090,235
933,244,414
CENTS
CENTS
Basic loss per share
(4.03)
(4.16)
Diluted loss per share
(4.03)
(4.16)
Nil (2023: 2,050,000) options, 13,620,000 (2023: 34,004,168) performance rights and 183,548 (2023: 455,084) service
rights over ordinary shares are not included in the calculation of diluted earnings per share because they are anti-
dilutive for the year ended 30 June 2024. These options could potentially dilute basic earnings per share in the future.
ACCOUNTING POLICY FOR EARNINGS PER SHARE
BASIC EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to the owners of BetMakers Technology Group
Ltd, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial
year.
DILUTED EARNINGS PER SHARE
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and
the weighted average number of additional ordinary shares that would have been outstanding assuming conversion of
all dilutive potential ordinary shares.
NOTE 34. SHARE-BASED PAYMENTS
Shares are granted under the Long Term Incentive Plan ('LTIP'), which has been established by the Group. Subject to
the ASX listing rules and under the terms of the LTIP, the Board may grant options and/or performance rights (options
with a zero exercise price and performance conditions) and/or service rights (options with a zero exercise price and only
service conditions) to eligible participants (‘awards’). Each award granted represents a right to receive one share once
the award vests and is exercised by the relevant participant. The vesting of the options are contingent upon various
company performance and term-of-service metrics.
The share-based payment benefit for the options, performance rights and service rights during the year was recognised
in profit or loss of $1,916,000 (2023: expense of $8,349,000).
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NOTE 34. SHARE-BASED PAYMENTS (CONTINUED)
OPTIONS
Options are issued to employees under the Company’s LTIP, vesting upon the achievement of performance and term-of-
service related criteria.
Set out below are summaries of options granted:
2024
GRANT DATE
EXPIRY DATE
EXERCISE
PRICE
BALANCE AT
THE START OF
THE YEAR
GRANTED
EXERCISED
EXPIRED/
FORFEITED/
OTHER
BALANCE AT
THE END OF
THE YEAR
02-Nov-20
30-Sep-23
$0.450
1,000,000
-
-
(1,000,000)
-
02-Nov-20
30-Sep-23
$0.500
800,000
-
-
(800,000)
-
08-Dec-20
31-Oct-23
$0.500
250,000
-
-
(250,000)
-
2,050,000
-
-
(2,050,000)
-
2023
GRANT DATE
EXPIRY DATE
EXERCISE
PRICE
BALANCE AT
THE START OF
THE YEAR
GRANTED
EXERCISED
EXPIRED/
FORFEITED/
OTHER
BALANCE AT
THE END OF
THE YEAR
29-Aug-19
31-Dec-22
$0.060
11,150,000
-
(11,150,000)
-
-
02-Nov-20
30-Sep-23
$0.450
1,000,000
-
-
-
1,000,000
02-Nov-20
30-Sep-23
$0.500
800,000
-
-
-
800,000
08-Dec-20
31-Oct-23
$0.500
250,000
-
-
-
250,000
29-Apr-21
01-Feb-23
$0.700
32,000,000
-
-
(32,000,000)
-
45,200,000
-
(11,150,000)
(32,000,000)
2,050,000
The weighted average share price of options exercised during the reporting period was $nil (2023: $nil).
The weighted average remaining contractual life of options outstanding at the end of the financial year was nil (2023: nil
years).
PERFORMANCE RIGHTS
Performance rights are issued to employees under the Company’s LTIP for nil consideration, vesting upon the
achievement of performance and term-of-service related criteria. At 30 June 2024, 13,620,000 of the performance
rights on issue are held by key management personal and staff. Set out below are summaries of performance rights
granted:
For personal use only
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NOTE 34. SHARE-BASED PAYMENTS (CONTINUED)
2024
GRANT DATE
EXPIRY DATE
EXERCISE
PRICE
BALANCE AT
THE START OF
THE YEAR
GRANTED
EXERCISED
EXPIRED/
FORFEITED/
OTHER
BALANCE AT
THE END OF
THE YEAR1
29-Apr-21
30-Jun-25
$0.000
5,000,000
-
-
(5,000,000)
-
29-Apr-21
30-Jun-25
$0.000
5,000,000
-
-
-
5,000,000
23-Jun-21
30-Jun-25
$0.000
10,062,500
-
(3,587,500)
(5,975,000)
500,000
28-Jan-22
31-Jan-24
$0.000
666,668
-
(666,668)
-
-
28-Jan-22
30-Jun-25
$0.000
2,750,000
-
(1,208,695)
(1,541,305)
-
24-Jun-22
30-Jun-25
$0.000
375,000
-
(125,000)
(250,000)
-
31-Jan-23
30-Jun-24
$0.000
1,500,000
-
-
(1,500,000)
-
31-Jan-23
30-Jun-25
$0.000
2,250,000
-
-
-
2,250,000
31-Jan-23
30-Jun-26
$0.000
3,750,000
-
-
-
3,750,000
21-Apr-23
30-Jun-24
$0.000
500,000
-
-
(500,000)
-
21-Apr-23
30-Jun-25
$0.000
750,000
-
-
-
750,000
21-Apr-23
30-Jun-26
$0.000
1,250,000
-
-
-
1,250,000
30-Jun-23
30-Jun-24
$0.000
30,000
-
-
(30,000)
-
30-Jun-23
30-Jun-25
$0.000
45,000
-
-
-
45,000
30-Jun-23
30-Jun-26
$0.000
75,000
-
-
-
75,000
06-Oct-23
06-Oct-23
$0.000
0
158,695
(158,695)
-
-
06-Oct-23
14-Aug-24
$0.000
0
50,000
-
(50,000)
-
06-Oct-23
14-Aug-25
$0.000
0
50,000
-
(50,000)
-
34,004,168
258,695
(5,746,558)
(14,896,305)
13,620,000
1. 5,000,000 performance rights relating to Todd Buckingham have vested and are exercisable at 30 June 2024.
2023
GRANT DATE
EXPIRY DATE
EXERCISE
PRICE
BALANCE AT
THE START OF
THE YEAR
GRANTED
EXERCISED
EXPIRED/
FORFEITED/
OTHER
BALANCE AT
THE END OF
THE YEAR
27-May-20
25-Jul-22
$0.180
1
-
(1)
-
-
27-May-20
25-Jan-23
$0.180
1
-
-
(1)
-
29-Apr-21
30-Jun-23
$0.000
5,000,000
-
(5,000,000)
-
-
29-Apr-21
30-Jun-24
$0.000
5,000,000
-
-
(5,000,000)
-
29-Apr-21
30-Jun-25
$0.000
5,000,000
-
-
-
5,000,000
29-Apr-21
30-Jun-25
$0.000
5,000,000
-
-
(5,000,000)
-
29-Apr-21
30-Jun-25
$0.000
5,000,000
-
-
-
5,000,000
29-Apr-21
01-Feb-23
$0.000
35,000,000
-
(35,000,000)
-
-
29-Apr-21
01-Feb-23
$0.000
32,000,000
-
-
(32,000,000)
-
23-Jun-21
30-Jun-25
$0.000
14,250,000
-
(3,612,500)
(575,000)
10,062,500
28-Jan-22
31-Jan-24
$0.000
2,000,000
-
(1,333,332)
-
666,668
28-Jan-22
30-Jun-25
$0.000
9,900,000
-
(1,162,500)
(5,987,500)
2,750,000
24-Jun-22
30-Jun-25
$0.000
500,000
-
(125,000)
-
375,000
31-Jan-23
30-Jun-24
$0.000
-
1,500,000
-
-
1,500,000
31-Jan-23
30-Jun-25
$0.000
-
2,250,000
-
-
2,250,000
31-Jan-23
30-Jun-26
$0.000
-
3,750,000
-
-
3,750,000
21-Apr-23
30-Jun-24
$0.000
-
500,000
-
-
500,000
21-Apr-23
30-Jun-25
$0.000
-
750,000
-
-
750,000
21-Apr-23
30-Jun-26
$0.000
-
1,250,000
-
-
1,250,000
30-Jun-23
30-Jun-24
$0.000
-
30,000
-
-
30,000
30-Jun-23
30-Jun-25
$0.000
-
45,000
-
-
45,000
30-Jun-23
30-Jun-26
$0.000
-
75,000
-
-
75,000
118,650,002
10,150,000
(46,233,333)
(48,562,501)
34,004,168
Of the performance rights exercised during the financial year, 35,000,000 related to Mr Tripp’s strategic advisory agreement. Per the terms of the agreement, the
performance rights vested upon the Company entering into the NTD agreement, which was deemed a ‘Strategic’ deal as per the agreement.
For personal use only
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NOTE 34. SHARE-BASED PAYMENTS (CONTINUED)
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was
3.0 years (2023: 2.073 years).
SERVICE RIGHTS
Service rights are issued to directors under the Company’s LTIP for nil consideration, vesting upon the achievement of
service and term-of-service related criteria.
Set out below are summaries of service rights granted under the plan:
2024
GRANT DATE
EXPIRY DATE
EXERCISE
PRICE
BALANCE AT
THE START OF
THE YEAR
GRANTED
EXERCISED
EXPIRED/
FORFEITED/
OTHER
BALANCE AT
THE END OF
THE YEAR1
07-Feb-22
07-Feb-37
$0.000
81,332
-
(50,048)
-
31,284
03-Mar-22
02-Feb-32
$0.000
41,526
-
(41,526)
-
-
03-Mar-22
08-Feb-32
$0.000
166,113
-
(166,113)
-
-
03-Mar-22
08-Feb-32
$0.000
166,113
-
(13,849)
-
152,264
455,084
-
(271,536)
-
183,548
1. 33,942 service rights have vested and are exercisable at 30 June 2024.
2023
GRANT DATE
EXPIRY DATE
EXERCISE
PRICE
BALANCE AT
THE START OF
THE YEAR
GRANTED
EXERCISED
EXPIRED/
FORFEITED/
OTHER
BALANCE AT
THE END OF
THE YEAR
07-Feb-22
07-Feb-37
$0.000
112,612
-
(31,280)
-
81,332
03-Mar-22
02-Feb-32
$0.000
166,113
-
(124,587)
-
41,526
03-Mar-22
08-Feb-32
$0.000
166,113
-
-
-
166,113
03-Mar-22
08-Feb-32
$0.000
166,113
-
-
-
166,113
610,951
-
(155,867)
-
455,084
The weighted average remaining contractual life of service rights outstanding at the end of the financial year was 3.0
years (2023: 4.06 years).
ACCOUNTING POLICY FOR SHARE-BASED PAYMENTS
Equity-settled share-based compensation benefits are provided to employees and advisers. Equity-settled transactions
are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services
and to others as part of their compensation for services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
for each option/right granted using Monte Carlo Simulation method to model the percentage of performance rights
vesting under the relative total shareholder return ('TSR') hurdle. The valuation was cross-checked by reference to the
Black-Scholes option pricing model, as appropriate, that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not
determine whether the group receives the services that entitle the employees to receive payment. No account is taken
of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
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NOTE 34. SHARE-BASED PAYMENTS (CONTINUED)
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the
vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award
is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
NOTE 35. EVENTS AFTER THE REPORTING PERIOD
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
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CONSOLIDATED ENTITY DISCLOSURE
ENTITY NAME
ENTITY TYPE
PLACE FORMED /
COUNTRY OF
INCORPORATION
OWNERSHIP
INTEREST
%
TAX RESIDENCY
BetMakers Technology Group Ltd
Body corporate
Australia
Australia 1
Operis Momentus Pty Ltd
Body corporate
Australia
100.00%
Australia 1
Global Tote Limited
Body corporate
Alderney
100.00%
Australia 1 / Foreign - Alderney
Global Tote Australia Pty Ltd
Body corporate
Australia
100.00%
Australia 1
Global Tote Lankan Pvt
Body corporate
Sri Lanka
100.00%
Australia 1
BetMakers DNA Pty Ltd
Body corporate
Australia
100.00%
Australia 1
Bookies Card Pty Ltd
Body corporate
Australia
100.00%
Australia 1
Global Betting Services Pty Ltd
Body corporate
Australia
100.00%
Australia 1
Dynamic Odds Pty Ltd
Body corporate
Australia
100.00%
Australia 1
Managed Trading Services Pty Ltd
Body corporate
Australia
100.00%
Australia 1
OM Apps Pty Ltd
Body corporate
Australia
100.00%
Australia 1
OM IP Pty Ltd
Body corporate
Australia
100.00%
Australia 1
12Follow Pty Ltd
Body corporate
Australia
100.00%
Australia 1
C.D.K. Software Limited
Body corporate
New Zealand
100.00%
Foreign - New Zealand
BetMakers US Inc.
Body corporate
United States of America
100.00%
Foreign - United States of America
Global Tote, LLC
Body corporate
United States of America
100.00%
Foreign - United States of America
Global Tote Europe Holdco 1
Body corporate
United Kingdom
100.00%
Foreign - United Kingdom
eBet Technologies Inc
Body corporate
United States of America
100.00%
Foreign - United States of America
Global Tote Canada
Body corporate
Canada
100.00%
Foreign - Canada
Datatote (England) Limited
Body corporate
United Kingdom
100.00%
Foreign - United Kingdom
Racing Technology Ireland Limited
Body corporate
Ireland
100.00%
Foreign - Ireland
Sportech France SAS
Body corporate
France
100.00%
Foreign - France
Sportech Racing Elekronik ve Bilgisayer
Hizmetleri Sangayi Ticaret Limited Sirketi
Body corporate
Turkey
100.00%
Foreign - Turkey
Autotote Europe GmbH
Body corporate
Germany
100.00%
Foreign - Germany
Sportech Racing GmbH
Body corporate
Germany
100.00%
Foreign - Germany
ABettorEdge Pty Ltd
Body corporate
Australia
100.00%
Australia
BetMakers MTS, LLC
Body corporate
United States of America
100.00%
Foreign - United States of America
1. BetMakers Technology Group Ltd (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax
consolidation regime.
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DIRECTORS' DECLARATION
In the Directors' opinion:
• the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
• the attached financial statements and notes comply with Australian Accounting Standards Board as issued by the
Australian Accounting Standards Board as described in note 2 to the financial statements;
• the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June
2024 and of its performance for the financial year ended on that date;
• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable; and
• the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in
accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
_______________________________
Matt Davey
Chairman
Date: 30 August 2024
Directors' Declaration
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INDEPENDENT
AUDITOR'S
REPORT
The following pages contain the Independent Auditor's Review Report.
INDEPENDENT AUDITORS REPORT
Independent auditor's review report
For personal use only
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF BETMAKERS TECHNOLOGY GROUP LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report of BetMakers Technology Group Limited (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, notes
comprising material accounting policy information and other explanatory information, the consolidated
entity disclosure statement, and the directors’ declaration of the Group and the consolidated entity
comprising the Company and the entities it controlled at the year end or from time to time during the
financial year.
In our opinion, the financial report of BetMakers Technology Group Limited is in accordance with the
Corporations Act 2001, including:
i)
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and
of its performance for the year ended on that date; and
ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the consolidated entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including
Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities in accordance with the Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
PKF(NS) Audit & Assurance Limited Partnership is a member of PKF Global, the network of member firms of PKF
International Limited, each of which is a separately owned legal entity and does not accept any responsibility or
liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a
scheme approved under Professional Standards Legislation.
PKF(NS) Audit & Assurance Limited Partnership
ABN 91 850 861 839
755 Hunter Street, Newcastle West NSW 2302
Level 8, 1 O’Connell Street, Sydney NSW 2000
Newcastle T: +61 2 4962 2688 F: +61 2 4962 3245
Sydney T: +61 2 8346 6000 F: +61 2 8346 6099
info@pkf.com.au
www.pkf.com.au
For personal use only
Key Audit Matters (cont’d)
1.
Impairment testing of goodwill and other intangible assets
Why significant
How our audit addressed the key audit matter
As disclosed in Note 13, the Group has
goodwill and other intangible assets of $59.1m
as at 30 June 2024 (2023: $56.7m).
At the end of each reporting period, the Group
is required to determine whether there is any
indication that the intangible assets are
impaired under AASB 136 Impairment of
Assets. Goodwill $30.8m (2023 $30.8m) is
assessed for impairment on an annual basis.
The
Group
uses
the
“value-in-use”
methodology in determining the recoverable
amount which measures the present value of
future cashflows expected to be derived from
these assets.
The evaluation of the recoverable amount
requires the Group to exercise significant
judgment, which include:
•
5-year cash flow forecast;
•
Growth rates;
•
Terminal growth factor; and
•
Discount rate.
The outcome of the impairment assessment
could vary if different assumptions were
applied. As a result, the evaluation of the
recoverable amount of goodwill and other
intangible assets is a Key Audit Matter.
As part of our procedures we assessed the
Group’s determination of Cash Generating Units
(CGUs). Our procedures included but were not
limited to the following:
•
assessing reasonableness of the FY24
budget approved by the Board by
comparing the budget to FY23 actuals
and other financial information;
•
reviewing key assumptions in the
forecast cash flows by comparing to
historical results and industry forecasts;
•
obtaining and reviewing contracts and
supporting pipeline revenue;
•
assessing the discount rate applied by
comparing the Weighted Average Cost
of Capital to industry benchmarks;
•
reviewing on a sample basis, the
mathematical accuracy of the cash flow
models;
•
assessing
management’s
sensitivity
analysis and performing independent
assessment
in
relation
to
key
assumptions including discount rate,
growth rate and terminal value;
•
assessing the appropriateness of the
disclosures including those relating to
sensitivities in the assumptions used,
included in Note 13;
•
assessing the expected utilisation of the
software
and
intellectual
property
acquired and their useful lives for
amortisation purposes; and
•
assessing the reliability of the “value-in-
use” method by cross checking to the
external valuation performed by external
experts, using the fair value less cost to
sell.
For personal use only
Key Audit Matters (cont’d)
2. Recoverability of deferred tax asset
Why significant
How our audit addressed the key audit matter
Our procedures included but were not limited
to:
At 30 June 2024 the Group recorded a
deferred tax asset of $13.9m (2023: $34.0m)
relating to deductible temporary differences
and tax losses incurred.
•
assessing the reasonableness of key
assumptions used in the 5-year
forecasts with respect to income and
As noted in Note 8 of the financial report, the
Group derecognised a deferred tax asset
amounting to $25.2m, primarily due to a
reassessment of the likelihood of future taxable
income;
expenditure
and
future
taxable
•
reviewing the nature of the deferred
tax asset (i.e. temporary differences or
revenue / capital losses) and its
assess management’s assessment of
the
deferred
tax
asset
that
is
recoverable based on the historical
loss and future projected taxable
income,
in
accordance
with
the
applicable tax jurisdiction;
testing, on a sample basis, the
mathematical accuracy of the cash
flow models;
deferred tax asset.’
profits, necessary for the utilization of the
•
Judgement is required in forecasting future
taxable income, where there are multiple
jurisdictions.
Based on the above, we have considered the
recognition and valuation of the deferred tax
asset to be a Key Audit Matter.
•
probability
of
being
realised
in
assessing the reasonableness of the
tax rates to apply when the assets are
expected to be recovered; and
accordance with the carried forward
tests;
•
•
assess
the
accuracy
and
completeness of the deferred tax asset
taxable income.
management’s
derecognised,
future
based
on
projected
For personal use only
Key Audit Matters (cont’d)
3. Revenue from contracts with customers
Why significant
How our audit addressed the key audit matter
For the year ended 30 June 2024, revenue
amounted to $95.2m (2023: $95.0m) as
disclosed in Note 5 of the Financial Report.
The Group’s accounting policy in respect of
revenue is outlined in Note 5.
Accordingly, given the nature of the judgement
in the accounting for revenue from contracts
from customers, we have determined this to be
a Key Audit Matter.
Our work included, but was not limited to, the
following procedures:
•
Obtaining an understanding of, and
testing selected key controls for their
operating effectiveness;
•
Reviewing significant contracts to
understand their terms and conditions
and their impact on revenue
recognition;
•
Using data analytics techniques on
revenue schedules to provide
enhanced insights and identify
potential exceptions and anomalies
for further investigation;
•
Testing a sample of revenue items
from across all revenue streams to
ensure accuracy and completeness of
recognition in accordance with
accounting standards;
•
Testing revenue cut-off testing to
ensure the recognition of revenue in
the appropriate periods; and
•
Assessing the appropriateness of the
related disclosures in Note 5.
For personal use only
Other Information
Other information is financial and non-financial information in the annual report of the Group which is
provided in addition to the Financial Report and the Auditor’s Report. The directors are responsible for
Other Information in the annual report.
The Other Information we obtained prior to the date of this Auditor’s Report was the director’s report.
The remaining Other Information is expected to be made available to us after the date of the Auditor’s
Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, the auditor
does not and will not express an audit opinion or any form of assurance conclusion thereon, with the
exception of the Remuneration Report.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information.
In doing so, we consider whether the Other Information is materially inconsistent with the Financial
Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other Information
in the Financial Report and based on the work we have performed on the Other Information that we
obtained prior the date of this Auditor’s Report we have nothing to report.
Directors’ Responsibilities for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report (other than the consolidated entity disclosure statement) that gives a
true and fair view and is free from material misstatement, whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the consolidated entity’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the
consolidated entity or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue and auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individual or
in aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
For personal use only
Auditor’s Responsibilities for the Audit of the Financial Report (cont’d)
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and other related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the consolidated entity’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the consolidated entity to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the consolidated entity to express an opinion on the Group financial report.
We are responsible for the direction, supervision and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
For personal use only
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of BetMakers Technology Group Limited for the year ended
30 June 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
PKF
PAUL PEARMAN
PARTNER
30 AUGUST 2024
SYDNEY, NSW
For personal use only
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SHAREHOLDER
INFORMATION
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
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The shareholder information set out below was applicable as at 6 August 2024.
DISTRIBUTION OF EQUITABLE SECURITIES
Analysis of number of equitable security holders by size of holding:
Ordinary Shares
Performance rights over
ordinary shares
Service rights
SPREAD OF HOLDINGS
NUMBER OF
HOLDERS
% OF TOTAL
SHARES ISSUED
NUMBER OF
HOLDERS
% OF TOTAL
SHARES ISSUED
NUMBER OF
HOLDERS
% OF TOTAL
SHARES ISSUED
1 - 1,000
2,526
0.17%
-
-
-
-
1,001 - 5,000
3,980
1.14%
-
-
-
-
5,001 - 10,000
1,665
1.35%
-
-
-
-
10,001 - 100,000
3,067
11.09%
22
4.80%
1
17.04%
100,001 and over
1,004
86.25%
26
95.20%
1
82.96%
12,242
100.00%
48
100.00%
2
100.00%
Holding less than a
marketable parcel
5,514
-
-
-
-
-
EQUITY SECURITY HOLDERS - TWENTY LARGEST QUOTED SECURITY HOLDERS
The names of the twenty largest security holders of quoted equity securities are listed below:
RANK
HOLDER NAME
SECURITIES
%
1
TRIPP INVESTMENTS PTY LTD
70,714,285
7.33%
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 1
63,846,157
6.62%
3
CITICORP NOMINEES PTY LIMITED
51,651,007
5.35%
4
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
48,729,775
5.05%
5
TEKKORP HOLDINGS LLC
33,279,894
3.45%
6
MR DAVID MARK ROCCI
17,709,176
1.83%
7
BNP PARIBAS NOMINEES PTY LTD
16,046,332
1.66%
8
TODD CAMERON BUCKINGHAM
13,418,216
1.39%
9
RBW NOMINEES PTY LTD
12,000,000
1.24%
10
J & M HUNTER INVESTMENTS PTY LTD
11,756,940
1.22%
11
JJ VENTURES LIMITED
11,242,106
1.16%
12
MR ANGUS WILLIAM JOHNSON & MRS LINDY JOHNSON
9,039,717
0.94%
13
BRIDGETRACK INVESTMENTS PTY LTD >
8,849,472
0.92%
14
THACKERAY PTY LTD
8,283,334
0.86%
15
ROSSBOW PTY LTD
6,745,000
0.70%
16
P G BINET (NO 5) PTY LTD
6,625,000
0.69%
17
TJCT PTY LIMITED
6,268,618
0.65%
18
ADA SERVICES (NSW) PTY LTD
5,845,559
0.61%
19
MRS DIANE ARAPIDIS
5,679,685
0.59%
20
HKELLY HOLDINGS PTY LTD
4,547,369
0.47%
Total
412,277,642
42.73%
1. The Company is advised that J P Morgan Nominees Australia Pty Limited holds 52,720,106 Shares as custodian for Tekkorp Holdings LLC.
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UNQUOTED EQUITY SECURITIES
The following Performance Rights are on issue:
CLASS
DATE OF EXPIRY
NUMBER OF
PERFORMANCE
RIGHTS
NUMBER OF
HOLDERS
Unlisted Performance Rights
30-Jun-25
18,512,500
44
Unlisted Performance Rights
30-Jun-26
2,030,000
9
Unlisted Performance Rights
30-Jun-27
8,120,000
9
28,662,500
62
The following Service Rights are on issue:
CLASS
DATE OF EXPIRY
NUMBER OF
SERVICE RIGHTS
NUMBER OF
HOLDERS
Unlisted Service Rights
15-Mar-32
152,264
1
Unlisted Service Rights
08-Feb-37
31,284
1
183,548
2
There are no holders outside of the Company’s employee incentive plan that hold more than 20% of the Performance
Rights and Service Rights on issue.
SUBSTANTIAL HOLDERS
The following holders are registered by the Company as a substantial holder, having declared a relevant interest in
accordance with the Corporations Act 2001, in the voting shares below:
HOLDER NAME
DATE OF
INTEREST
NUMBER OF
ORDINARY
SHARES¹
% OF ISSUED
CAPITAL²
% OF CURRENT
ISSUED SHARE
CAPITAL³
Tekkorp Holdings LLC4
02-May-22
105,381,305
11.66%
10.92%
Tripp Investments Pty Ltd ATF Tripp Investment Trust
02-Sep-22
70,714,285
7.50%
7.33%
1. As disclosed in the last notice lodged with the ASX by the substantial shareholder.
2. The percentage set out in the notice lodged with the ASX is based on the total issued capital of the Company at the date of interest.
3. The percentage based on the number of shares held by the holder as set out in the last notice lodged with the ASX relative to the total issued capital of the Company as
at 6 August 2024.
4. Tekkorp Holdings LLC is controlled by Director, Matthew Davey, who has disclosed in the Appendix 3Y lodged on 14 December 2023 that Tekkorp Holdings LLC has a
relevant interest in 114,000,000 shares, being 11.81% of current issued share capital.
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VOTING RIGHTS
SECURITIES
VOTING RIGHTS
Ordinary Shares
Subject to any rights or restrictions for the time being attached to any class or classes at general
meetings of shareholders or classes of shareholders:
(a) on a show of hands, every member present has one vote;
(b) on a poll, every member present has:
(i) one vote for each fully paid share held as at the record time by the member and in respect of
which the member is entitled to vote; and
(ii) a fraction of a vote for each partly paid share held as at the record time by the member
and in respect of which the member is entitled to vote, equivalent to the proportion which
the amount paid (not credited) on the share bears to the total amounts paid and payable
(excluding amounts credited) on the share.
Options
Options do not carry any voting rights.
Performance Rights
Performance Rights do not carry any voting rights.
Service Rights
Service Rights do not carry any voting rights.
RESTRICTED SECURITIES
There are no shares on issue that are subject to mandatory escrow restrictions ASX Listing Rules Chapter 9.
The following securities are subject to voluntary escrow restrictions:
CLASS
NUMBER OF SECURITIES
Ordinary shares subject to voluntary escrow restrictions until 21 April 2025
35,000,000
Ordinary shares subject to voluntary escrow restriction until 10 April 2025
7,894,738
Ordinary shares subject to voluntary escrow restriction until 10 April 2026
7,894,738
SHARE BUY-BACKS
There is no current on-market buy-back scheme.
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CORPORATE
DIRECTORY
SHAREHOLDER INFORMATION
CORPORATE DIRECTORY
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CORPORATE INFORMATION
DETAILS
Directors:
Matt Davey
Simon Dulhunty
Rebekah Giles
Anna Massion
Company secretary:
Charly Duffy
Notice of annual general
meeting:
The 2024 Annual General Meeting will be held on 26 November 2024, at 189 Flinders Lane,
Melbourne, VIC 3000, unless otherwise notified.
Registered office and
principal place of business:
Level 4, 189 Flinders Lane,
Melbourne, VIC 3000
Telephone: 1300 208 849
Share register:
Automic Pty Ltd
Level 5, 191 St Georges Terrace
Perth, WA 6000
Share registry telephone: 1300 288 664
Auditor:
PKF(NS) Audit & Assurance Limited Partnership
755 Hunter Street
Newcastle West, NSW 2303
Solicitors:
Coghlan Duffy & Co
Level 42, Rialto South Tower, 525 Collins Street
Melbourne, VIC 3000
Stock exchange listing:
BetMakers Technology Group Ltd shares are listed on the Australian Securities Exchange
(ASX code: BET)
Website:
https://betmakers.com
Corporate Governance
Statement:
The Directors and management are committed to conducting the business of BetMakers
Technology Group Ltd in an ethical manner and in accordance with the highest standards of
corporate governance. BetMakers Technology Group Ltd has adopted and has substantially
complied with the ASX Corporate Governance Principles and Recommendations (Fourth
Edition) (‘Recommendations’) to the extent appropriate to the size and nature of its operations.
The Group’s Corporate Governance Statement, which sets out the corporate governance
practices that were in operation during the financial year and identifies and explains any
Recommendations that have not been followed, and ASX Appendix 4G are released to the
ASX on the same day the Annual Report is released. The Corporate Governance Statement
can be found at https://betmakers.com/asx-releases/.
For personal use only
For more about BetMakers, visit www.betmakers.com.
For personal use only