BETMAKERS TECHNOLOGY GROUP LTD — Capital/Financing Update 2020

Dec 21, 2020

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22 December 2020

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BETMAKERS SIGN FIXED ODDS AND GLOBAL DISTRIBUTION DEALS IN JAMAICA

Highlights

• Exclusive agreements with Supreme Ventures Racing and Entertainment Ltd

• 5-year deal to manage Fixed Odds on all racing at SVREL venues and online in Jamaica

• · 5-year deal to distribute Jamaican racing from Caymanas Park internationally

The Board of BetMakers Technology Group Limited (“ BetMakers ” or “ the Company ”) (ASX:BET) is pleased to announce that the Company’s wholly owned subsidiaries, BetMakers DNA Pty Ltd (“ BDNA ”) and Managed Trading Services Pty Ltd (“ MTS ”), have signed agreements with Prime Sports Jamaica Limited (“ PSJ ”) and Supreme Ventures Racing and Entertainment Ltd (“ SVREL ”) which are wholly-owned subsidiaries of Supreme Ventures Limited (“ SV ”).

Under terms set out in the exclusive five-year agreements, BetMakers has secured the rights to manage Fixed Odds wagering (through its Managed Trading Services division) for Fixed Odds bets placed on all horse racing, including Jamaican and international race meetings, through SVREL channels including their online site, at more than 100 Off Track Betting (OTB) parlours and on track at Caymanas Park. The agreements also secure exclusive rights for BetMakers to exclusively distribute and manage (through its Global Racing Network) all racing data including Fixed Odds for horse racing at Jamaica’s leading race track Caymanas Park (owned by SVREL) to international online wagering operators.

While it is not currently possible to quantify the economic impact of the Data Distribution Agreement or the MTS Agreement, the Board of BetMakers believes that they will have a material impact on the Company’s revenues once the commercial arrangements have been implemented. The material terms of these Agreements are annexed to this announcement.

BetMakers has also entered into a Sponsorship Agreement with SVREL pursuant to which BetMakers will sponsor and have exclusive naming and branding rights to a new trainers pavilion to be constructed at Caymanas Park and be a named sponsor with broad advertising rights at key SVREL events.

Managing Director of BetMakers Todd Buckingham said:

“We are excited to partner with Supreme Ventures and Caymanas Park to bring Fixed Odds betting on horse racing into Jamaica and to export the Caymanas Park race meetings through our Global Racing Network to the rest of the world.

“This new deal again highlights our business model and intentions to partner with regulated race tracks and licenced wagering operators across the world to help sustain and grow any region’s racing industry through a globalisation of racing using BetMakers’ data and technology platforms.

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“BetMakers intends to use its products as well as the knowledge and learnings from the vibrant Australian racing and wagering market to work with Supreme Ventures in making Caymanas Park not only the jewel in the crown of Caribbean racing, but also to become a truly international racing destination for punters, which can benefit the racing industry and all of its stakeholders in Jamaica.”

Supreme Ventures Chairman, Gary Peart, said:

“We are delighted to choose BetMakers as our partner in this venture as BetMakers has proven itself as the global leader in horse racing distribution and betting solutions built on superior technology and integrity-based platforms.

“Supreme Ventures believes that the Fixed Odds innovation that BetMakers has championed in North America will deliver a huge benefit to the global racing industry as it competes against other sports in an increasingly competitive sports betting market.

“We are very proud to be one of the first tracks that will implement the sophisticated Fixed Odds system that BetMakers provides, and we see this new deal as a major transformational change for the Jamaican horse racing industry.

“What BetMakers are bringing to the table for Supreme Ventures and Caymanas Park provides the racing industry in Jamaica with a tremendous boost and opportunity for major growth as well as vastly benefitting the Jamaican betting public.”

For further information please contact Charly Duffy Jane Morgan Company Secretary Investor and Media Relations companysecretary@thebetmakers.com investors@thebetmakers.com + 61 (0) 409 083 780 + 61 (0) 405 555 618

Todd Buckingham, Managing Director of BetMakers, authorised the release of this announcement to ASX.

About SVREL & SVG

Supreme Ventures is the leading gaming and entertainment group of companies in Jamaica and the region. This is a title earned over 18 years of innovation, strategized risk and a genuine love for the thrill of gaming.

A dominant force in gaming, Supreme now promotes horse racing, sports betting, slot machines, gaming lounges and online gaming assets that bring lotteries, horse racing and sports betting to the palm of your hand.

2019 saw the launch of SV Games, the first locally based mobile gaming app in Jamaica, the expansion of the MBet mobile platform for horse racing, and the upgrade of JustBet Mobile to streamline the sports betting process and make it easier for sports lovers to get in the game.

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Supreme have donated over JMD$18 billion to the Government coffers which safeguards the country’s culture, health, arts, sports and educational social activities. The also contributed JMD$7.8 billion through their taxes for 2019. Supreme have made immeasurable contribution to the various communities we operate in, children in state care and education through good causes, executed chiefly through the Supreme Ventures Foundation.

https://supremeventures.com/

About Caymanas Park

A former sugar estate, Caymans Parl and was officially opened in August 1959. The ownership changed hands over the years. In 1972 a new legal structure was put in place to regulate and control horse racing and the management of Caymanas Park, hence, the Jamaica Racing Commission was established. The Jockey Club, formed in 1905, which was previously entrusted with regulating the sport, was incorporated into the JRC.

In March 2017, Caymanas Park’s management was taken over by Supreme Ventures Racing and Entertainment Limited (a subsidiary of the Lottery and Gaming Company, Supreme Ventures Limited). After the acquisition of the track, SVREL invested billions of dollars into the rebranding and revolutionizing of Caymanas Park.

https://caymanasracing.com/

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 by forward-looking statements. Forward-looking statements are based on:

• 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

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

Actual results, performance or achievements of the Company could be materially different from those expressed in, or implied by, these forward-looking statements. The forward-looking statements contained within the presentations 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; 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 statements 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 projections or forecasts included in this presentation 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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Annexure A: Material Terms of Fixed Odds and Data Distribution Agreement

The material terms of the Fixed Odds and Data Distribution Agreement (“ Data Distribution Agreement ”) are as follows:

• in consideration for a percentage of revenues generated from relevant wagering operators, SVREL grants a license to BDNA to distribute, publish, reproduce, display and otherwise use various content and data relating to races held or to be held at Caymanas Park (“ Data ”) for the purpose of Fixed Odds betting to licensed wagering operators. This licence is exclusive in all Caribbean and international markets (including USA) other than South Africa where the licence is non-exclusive;

• during the term, BDNA must distribute the Data in accordance with the terms of the Data Distribution Agreement;

• the initial term of the Data Distribution Agreement is 5 years from 21 December 2020. The term will be extended for a further term of 5 years on such terms as are agreed between the parties where either party gives at least 3 months written notice of its intention to renew;

• either party may terminate the Data Distribution Agreement if the other party:

• breaches a material term of the Data Distribution Agreement and fails to rectify the breach within 21 Business Days of receiving notice to do so; or

• suffers an insolvency event, including (without limitation) the appointment of a liquidator, administrator, receiver, manager and receiver, or enters into any compromise, reconstruction, dissolution or other arrangement for the benefit of creditors or similar procedure; and

• the Data Distribution Agreement is governed by the laws of Jamaica.

The material terms of the Managed Trading Services Agreement (“ MTS Agreement ”) are as follows:

• the MTS Agreement is conditional upon BetMakers and PSJ / SVREL obtaining the relevant regulatory approvals in respect of the provision of the services and equipment;

• in consideration for a percentage of profits generated by Fixed Odds betting at SVREL, online and in SVREL venues, BetMakers will manage and maintain all fixed odds horse racing for any fixed odds bets placed online or in SVREL venues. BetMakers will also supply, install and maintain fixed odds betting terminals at SVREL venues and provide the appropriate fixed odds data, prices and vision for display in each SVREL venue;

• the initial term of the Agreement is 5 years commencing on the effective date of 21 December 2020. Unless the MTS Agreement is terminated before the end of the initial term, the MTS Agreement will be extended for a further term of 5 years unless either party gives notice of non-renewal to the other party no less than 90 days prior to the expiry of the initial term;

• either party may terminate the MTS Agreement if the other party

• breaches a material term of the MTS Agreement and fails to rectify the breach within 21 Business Days of receiving notice to do so; or

• suffers an insolvency event, including (without limitation) the appointment of a liquidator, administrator, receiver, manager and receiver, or enters into any compromise, reconstruction, dissolution or other arrangement for the benefit of creditors or similar procedure; and

• BetMakers will hold the risk for wagers for fixed odds horseracing generated at SVREL, online and SVREL venues for racing conducted at Caymanas Park and from fixed odds international horse racing and provide relevant guarantees including required cash reserves.

The material terms of the Sponsorship Agreement (“ Sponsorship Agreement ”) are as follows:

• Whilst the terms are confidential and commercially sensitive, BetMakers will provide sponsorship funding to SVREL over a five year period. SVREL shall apply part of these sponsorship funds toward the construction of a new trainers pavilion. The Board does not consider the Sponsorship Agreement to be material;

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• In consideration for its sponsorship commitments, BetMakers will receive:

• Exclusive naming and branding rights to the new trainers pavilion for at least 10 years;

• Feature race sponsorship for the Triple Crown Series, Quarterly Championship, one race each race day for the first year and pro rata race sponsorship in years two to five;

• Recognition as a sponsor in televised advertising, digital advertising (web, social media and race day broadcasts), print advertising, non-paid media and signage and branding assets throughout Caymanas Park during the first year and pro rata branding opportunities in years two to five.