News Corp has divested its stake in the Australian gambling startup, Betr, after an initial investment of AU$70 million (US$44 million). This move comes less than a year since Betr’s launch in October 2022 and follows a series of regulatory issues, including a substantial AU$210,000 fine imposed by Liquor and Gaming NSW.
Swift Exit:
News Corp, a media conglomerate, has opted to sell its shares in Betr, an Australian gambling startup, after making an initial investment of AU$70 million.
The decision to divest comes just months after Betr’s launch, signaling a rapid change in fortunes for the company.
Regulatory Challenges:
Betr faced significant regulatory issues, with Liquor and Gaming NSW issuing 14 infringement notices for what it deemed “significant breaches of the law.”
In April, Betr received an AU$210,000 fine from regulators, adding to its troubles.
100-1 Promotion Consequences:
One of Betr’s challenges stemmed from a 100-1 promotion that the company struggled to honor, resulting in the need to pay over AU$40 million to its players.
Liquor & Gaming NSW criticized such promotions for their potential to harm the community and the risk they posed.
Financial Impact:
News Corp reported losses related to its investment in Betr, with losses totaling AU$72 million, according to its recent annual financial report.
Two News Corp Senior Executives, Mark Reinke and Peter Blunden, who had joined Betr’s board, resigned in March.
News Corp’s decision to sell its stake in Betr highlights the challenges faced by the gambling startup, ranging from regulatory issues to financial strain caused by promotions like the 100-1 offer. Betr’s rapid rise and subsequent difficulties serve as a cautionary tale in the competitive world of online gambling. As the industry continues to evolve, companies must navigate stringent regulations and prioritize responsible marketing practices to thrive in the market.