BETMAKERS TECHNOLOGY GROUP LTD — Interim / Quarterly Report 2021

Feb 25, 2021

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26 February 2021

BETMAKERS HALF-YEAR RESULTS

The Board of BetMakers Technology Group Limited (“BetMakers” or “the Company”) (ASX:BET) is pleased to announce the Company’s results for the half-year ended 31 December 2020.

For the half-year ended 31 December 2020, the Company reported:

• Revenues of $7.59 million (increase of 88% Y-o-Y)

• Underlying EBITDA of $0.04 million

• Closing cash balance of $68.6 million

Sportech Tote & Digital Acquisition Update

The Board of BetMakers is pleased to update the market that the proposed acquisition of Sportech’s tote and digital assets is on track to complete during next financial quarter.

As previously announced to the market, the proposed acquisition of Sportech’s tote and digital business is expected to add substantial revenues and EBITDA to BetMakers’ consolidated business. On a pro-forma basis for FY20, the Tote and Digital Business combined with BetMakers’ existing operations would have delivered A$56.1 million revenue and A$7.7 million EBITDA.

The Company is especially pleased with its targeted expansion in the United States and believes the acquisition of Sportech’s tote and digital assets will deliver transformational growth for BetMakers in this key jurisdiction.

Once completed, the deal will give access to 36 States across the U.S with more than 100 customers across race tracks and casinos, positioning the Company’s growth in the region.

U.S. Fixed Odds Update

As previously announced to the market, the New Jersey Bill which “authorizes fixed odds wagering on horse races through fixed odds wagering system” has been introduced to the New Jersey Legislature. The Bill is expected to progress during the first half of CY21. If and when the Bill becomes law, BetMakers’ exclusive agreement with the New Jersey Thoroughbred Horsemen Association and Darby Development LLC. (the operator of Monmouth Park race track) to manage Fixed Odds betting on horse racing within New Jersey will commence.

The Company has set a deliberate path to actively support Fixed Odds betting on horse racing in the U.S. and continues to work with legislators, regulators and racing authorities in New Jersey and other

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States to establish both a legal framework and a model intended to support racing industries and commercial partners.

The Company believes it is strongly placed to execute on these opportunities and looks forward to updating the market on developments regarding Fixed Odds wagering throughout the U.S.

Matt Tripp Partnership, Strategic Investment and Placement

As announced to the market on 17 February 2021, the Company entered into an agreement with Matt Tripp to partner exclusively with BetMakers to accelerate growth of its B2B wagering strategy. In conjunction with this partnership, Mr Tripp also agreed to subscribe for $25 million new shares (subject to shareholder approval), and the Company completed a placement of an additional $50 million from several existing shareholders.

A notice of meeting with respect to the proposed Extraordinary General Meeting will be sent to shareholders shortly.

H1 FY21 Financial Performance

A summary of the Statement of Profit or Loss and other comprehensive income is provided below.

Statement of profit or loss and other comprehensive income	31-12-20
	$
Revenue	7,594,524
EBITDA¹	(1,677,878)
add one-off deal costs²	831,355
add US operational costs³	883,589
Underlying EBITDA	37,057

¹ : Excludes share-based payments expense of $3,083,161

² : Predominantly relates to professional fees incurred in relation to the acquisition of Sportech’s tote and digital assets

³ : The Company spent $0.88 million on its U.S. expansion including progression of its Fixed Odds strategy throughout the U.S. and in particular New Jersey. The Company is yet to derive revenues from this investment.

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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.

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.