BlueBet Acquires TopSport in Strategic Move to Expand

The Australian wagering landscape is changing fast—are you keeping up? BlueBet has just secured a game-changing deal, acquiring TopSport in a strategic move to expand its market presence and boost profitability. This acquisition strengthens BlueBet’s position in the competitive sports betting industry while delivering significant shareholder value. With regulatory approvals pending, BlueBet is set to integrate TopSport’s loyal customer base, advanced betting technology, and key personnel. Stay ahead of the curve as BlueBet takes a bold step toward its goal of 10%+ market share in Australia.

BlueBet Acquires TopSport in Strategic Expansion to Dominate Australian Wagering Market

Key Points:

1. BlueBet Acquires TopSport’s Core Assets
   • BlueBet secures TopSport’s brand, customer base, IP, and key contracts in an asset sale agreement.
   • The deal excludes liabilities, focusing only on revenue-generating assets.
2. Significant Financial and Market Growth Impact
   • Expected to increase earnings per share (EPS) by 30%+ in FY26 and FY27.
   • TopSport’s $198.9M turnover and 5.9% net win margin add strong revenue potential.
3. Acquisition Funded by a $15M Institutional Placement
   • BlueBet issues 44.1 million new shares at $0.34 per share to finance the deal.
   • The placement covers purchase price, integration costs, and future expansion plans.

BlueBet Strengthens Market Position with TopSport Acquisition

BlueBet Holdings has announced the acquisition of Australian sports betting operator TopSport, a move designed to enhance its market share, improve operational scale, and drive profitability.

The asset sale agreement will see BlueBet take over TopSport’s customer database, brand, intellectual property, material contracts, and key employees. However, liabilities and certain non-core assets will remain with TopSport’s founders.

Financial Structure of the Deal

The transaction involves an upfront payment of $10M, with 70% in cash and 30% in shares. Additionally, there are deferred earn-out payments tied to net gaming revenue from TopSport customers over the next three years.

To support this acquisition, BlueBet launched a $15M institutional placement, issuing 44.1 million new shares at $0.34 per share. This capital will fund the cash portion of the deal, integration costs, and support BlueBet’s broader expansion strategy.

BlueBet CEO Andrew Menz highlighted the significance of this move:

“The acquisition of TopSport materially enhances BlueBet’s profitability and scale, is highly accretive for our shareholders, and brings us closer to our strategic target of 10%+ market share in Australia.”

Regulatory Approvals and Timeline

The deal is subject to regulatory approval from the Northern Territory Racing Commission and the Greyhound Welfare and Integrity Commission. If approved, the acquisition is expected to be finalized by April 2025.

Pending approvals, Tristan Merlehan, TopSport’s CEO, will join BlueBet as Chief Trading Officer, further strengthening BlueBet’s executive team.

TopSport’s Market Strength & Synergies

Founded by Tristan and Lloyd Merlehan, TopSport has built a strong reputation in the Australian wagering industry, particularly among high-value sports bettors. In 1H25, TopSport reported a $198.9M turnover with an $11.8M net win, boasting a 5.9% net win margin.

Merlehan emphasized the alignment between the two companies:

“We conducted a thorough process to identify the best partner for TopSport, and BlueBet was the clear choice. BlueBet’s track record in successful customer migrations and scaling wagering businesses is unrivaled in this market.”

This acquisition follows BlueBet’s 2024 purchase of Betr, further accelerating its market expansion and operational efficiency initiatives.

Future Outlook for BlueBet

With EBITDA profitability already achieved in 1H FY25, BlueBet continues its aggressive expansion strategy. The integration of TopSport’s customer base and trading expertise is expected to strengthen its sportsbook offering and improve margins.

By consolidating TopSport’s operations into its platform, BlueBet aims to increase revenue synergies, enhance customer retention, and optimize trading performance. This move positions BlueBet as a leading challenger to larger Australian wagering operators like Sportsbet, Ladbrokes, and Neds.

BlueBet’s acquisition of TopSport marks a significant milestone in the Australian sports betting industry. By expanding its market presence, boosting profitability, and enhancing operational efficiency, BlueBet is taking a decisive step toward long-term dominance in the sector.

With regulatory approvals pending, all eyes are on BlueBet as it prepares to integrate TopSport’s customer base, brand, and expertise into its operations. If successful, this deal will solidify BlueBet’s position as a key player in Australia’s growing wagering market.

As the industry continues to evolve, BlueBet’s strategic acquisitions and financial discipline position it for sustained growth and market leadership.