Why betr Entertainment's failed PointsBet bid isn't the whole story
betr Entertainment lost its bidding war for PointsBet to Japan's MIXI, but retains a stake in the target and continues shifting toward a stickier recreational customer base.
30 Apr 2026 · 5 min read
In short
betr Entertainment lost its bidding war for PointsBet after rival bidder MIXI acquired over 50% of PointsBet's shareholder register.
The company retains around 27% of PointsBet's shares, which Ellerston Capital sees as an opportunity to unlock value in the future.
betr Entertainment is shifting from a VIP-led betting model toward a more recreational, repeat customer base, aiming to improve earnings quality and reduce volatility.
Digital wagering company betr Entertainment ultimately lost its bidding war for PointsBet to Japan's MIXI, with Ellerston Capital's September 2025 Monthly Report detailing the share price softening after rival bidder MIXI acquired over 50% of PointsBet's register, even as betr retained around 27% of PointsBet's shares and press reports pointed to preliminary discussions with other parties about potential M&A activity beyond that stake.
A strong underlying business overshadowed by the failed bid
Salter Brothers' August 2025 Monthly Report detailed the operational strength that underpinned betr's takeover ambitions: fourth-quarter underlying EBITDA guidance achieved, total customers growing to 155,420, and the Topsport acquisition successfully integrated within 55 days, delivering synergies 20% higher than initially expected. Ellerston Capital's own August 2025 report confirmed the FY25 result exceeded market expectations, with net win margins remaining resilient despite the addition of lower-margin customers from the acquisition, underscoring the strength of the platform even as the company was ultimately outbid for PointsBet.
BBT remains well capitalised and is positioned to continue consolidating the sector.
— Ellerston Capital, Monthly Report, August 2025
Ellerston Capital's April 2026 Monthly Report detailed a further evolution in the underlying business since the failed PointsBet approach: win margins normalised within the company's target range following a highly promotional Spring Carnival period and unfavourable sporting outcomes, with management reaffirming EBITDA guidance of $5-8 million for the second half of FY26 and $13-19 million for FY27. The report highlighted a structural shift away from a VIP-led model toward a more recreational, repeat customer base, which should improve earnings quality and reduce volatility over time, alongside new product traction with Same Game Multi turnover up 33% year on year.
What managers are watching next
With betr still holding roughly 27% of PointsBet even after losing the bidding war, Ellerston Capital's September 2025 report flagged this remaining stake as an opportunity to unlock value in the future, whether through an eventual sale or other strategic action. Combined with ongoing cost reductions, modest top-line growth, and the shift toward a stickier recreational customer base, managers are watching whether betr can convert its well-capitalised position into further sector consolidation opportunities beyond the PointsBet approach.
Questions
Why did betr Entertainment lose the PointsBet takeover battle?
betr Entertainment was outbid by Japan's MIXI, which ultimately acquired over 50% of PointsBet's shareholder register despite betr raising its all-scrip offer multiple times during a protracted competitive bidding process.
Does betr Entertainment still have exposure to PointsBet?
Yes. According to Ellerston Capital, betr Entertainment retains approximately 27% of PointsBet's shares even after losing the takeover battle, which the manager views as an opportunity to unlock value from in the future.
How is betr Entertainment's customer base changing?
Ellerston Capital notes betr Entertainment is transitioning away from a VIP-led betting model toward a more recreational and repeat customer base, which should structurally improve earnings quality and reduce volatility over time.
3 managers, 10 comments, with each manager's latest recorded position.
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