BETMAKERS TECHNOLOGY GROUP LTD — Capital/Financing Update 2018

Aug 27, 2018

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The BetMakers Holdings Limited ABN: 21 164 521 395 Phone: 1300 886 503 Fax: (02) 4962 2553 22 Lambton Road Broadmeadow NSW 2292

28 August 2018

BetMakers fully funded to complete GBS and DynamicOdds acquisitions

The Board of The BetMakers Holdings Group Limited (ASX:TBH) is pleased to announce that it has placed, or received firm commitments for, an additional $3.0 million worth of shares from new and existing investors, taking the total amount raised from the recent entitlement offer to $4.5 million. The Board would also like to announce the following key updates:

• The Company is now fully funded to make the completion payments for the GBS and DynamicOdds transactions

• 100% ownership of DynamicOdds will take place on 31 August 2018 and GBS on 17 September 2018

• BetMakers has secured more favourable payment terms with the vendors of GBS

• Contract upgrades and extensions have been signed with Ladbrokes Australia and Neds.com.au

• Signing of second US greyhound product for distribution.

Entitlements Issue

BetMakers has placed, or received firm commitments for, an additional $3.0 million worth of new shares from new and existing institutional and sophisticated investors; taking the total raised in the entitlement issue to $4.5 million. Approximately $2.4 million received from existing shareholders for the shortfall placement is expected to be settled on 31 August 2018 with the balance to be settled to both new and existing shareholders after the issue of a cleansing prospectus.

Acquisition updates

Betmakers has negotiated more favourable terms with the vendors of Global Betting Solutions Pty Ltd (“GBS”) with payment terms outlined below:

• $1M payable on – 17 September 2018;

• $2.5M payable on 31 January 2019; and

• $3.5M Payable on 30 June 2019.

Completion of the DynamicOdds transaction is scheduled to occur on this Saturday 1st September after which time the DynamicOdds business will be 100% owned by TBH. Completion of the GBS transaction is scheduled to occur on 17th September after which time the GBS business will be 100% owned by TBH. Through the recent capital raisings the Company is fully financed to fund the completion payments for both transactions.

investors.thebetmakers.com • investors@thebetmakers.com • Postal Address: PO Box 33 Broadmeadow NSW 2292

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Ladbrokes & NEDS contract upgrades and extensions

Australian wagering operators Ladbrokes Australia and Neds.com.au have both extended their Racing Data Delivery and Racing Price Manager Premium contracts with GBS. Both companies have also elected to upgrade to the DynamicOdds offering which will give them access to the DynamicOdds grids and risk management platform.

US Greyhound data and distribution deals

BetMakers have signed a second US data and distribution deal with US greyhound club, bestbets Jacksonville which hosts over 6,000 races annually. This agreement, along with the recently announced Palm Beach Kennel Club deal, now allows BetMakers to offer an additional 11,000 races to clients annually.

Profit guidance

As outlined in the July 2018 Investor Presentation*, BetMakers are reiterating that the business expects to deliver an operating profit for FY19

The business expects to return an operating loss for first half FY19 and transitioning to profit by the end of this period. It expects to have a strong 2nd half delivering a profitable full year result in FY19'

The Company would also like to reiterate its profit guidance of $4.0 million to $5.0 million for FY20.

*Assumptions based on previously stated assumptions in July 2018 Investor Presentation

The Company has engaged Canaccord Genuity Australia Limited (“ Canaccord ”) to assist with the placement. Subject to completion of the placement, TBH will issue to Canaccord 4,000,000 unquoted options exercisable into fully paid ordinary shares in TBH on a 1:1 basis (“ Options ”) on the following terms

• § expiry date of 30 November 2020; and

• § exercise price of 12.5 cents.

The Options will be issued under TBH’s 15% placement capacity under ASX Listing Rule 7.1.

For further information on the Company, please contact:

Charly Duffy Company Secretary companysecretary@thebetmakers.com + 61 (0) 409 083 780	Jane Morgan Investor & Media Relations investors@thebetmakers.com
	+ 61 (0) 405 555 618

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Disclaimer

This announcement contains “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”, “intend”, “estimate”, and “expect”. Statements which are not based on historic or current facts may be forward-looking statements. Forward looking statements are based on:

(a) assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and

(b) current views, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties.

The forward-looking statements contained within the announcement are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include: general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does and will operate; weather and climate conditions; technology and infrastructure; conduct of contracted counterparties; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this announcement should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statement to reflect any change in the Company’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The data, projections or forecasts included in this announcement have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements.

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