PointsBet Rejects Betr’s All-Share Bid, Backs AU$402M MIXI Cash Offer

A “Flawed Proposal” Lacking Certainty

PointsBet’s board outlined several key reasons for rejecting Betr’s all-share bid, which offered 3.81 Betr shares for each PointsBet share. The primary concern was the lack of cash certainty.

Because it was an all-share offer, its value would fluctuate with Betr’s stock price, which has low trading liquidity, making it difficult for shareholders to monetize.

The company stated the proposal “gives shareholders no clear path to monetisation.” The offer was also highly conditional, requiring approvals from Betr’s own shareholders and regulators in Ontario, which introduced significant uncertainty and potential delays.

PointsBet concluded that Betr’s offer was simply a “flawed proposal” that exposed its shareholders to unnecessary risk.

Concerns Over Betr’s “Volatile” Business Model

Beyond the offer’s structure, PointsBet raised serious questions about the sustainability of Betr’s business. The board pointed to Betr’s “volatile VIP-heavy customer base,” noting that over 50% of Betr’s net win in January 2025 came from just 20 customers. PointsBet argued this model introduces “material volatility and regulatory risks.”

Furthermore, the board criticized Betr’s business mix, where 85% of net win comes from horse racing products, a segment PointsBet considers less innovative and with lower growth potential than sports. They also flagged Betr’s high customer churn rates and its reliance on high levels of gratuity spending as unsustainable.

Overstated Synergies and Cannibalization Risk

PointsBet dismissed Betr’s claims of significant cost savings, stating that the proposed synergies were “materially overstated.” The board argued Betr had underestimated the required investment in technology and branding needed to merge the two companies.

A major red flag was the high degree of customer overlap between the two operators. PointsBet estimated that 61% of the combined net win would come from customers who already had accounts with both companies.

This created a “real risk of cannibalisation,” meaning the merged entity would likely just be recycling existing customers rather than creating new value.

The board also highlighted the “significant integration and implementation challenges” that would further erode any potential synergies.

The Certainty of MIXI’s All-Cash Offer

In contrast to Betr’s risky proposal, PointsBet is backing a straightforward, all-cash offer from MIXI. The Japanese company has put AU$1.20 per share on the table, giving PointsBet an enterprise value of AU$402 million.

The board described the deal as a “clear and compelling alternative” that provides “superior all-cash certainty.”

MIXI’s offer has already gained significant momentum. The company has secured the necessary regulatory approvals and has pre-acceptance from investors holding 17.18% of PointsBet’s shares, including all of PointsBet’s directors.

In a direct message to its investors, the PointsBet board urged them to “Accept the MIXI Takeover Offer, and do so without delay,” signaling a definitive end to the takeover battle with Betr.