BETMAKERS TECHNOLOGY GROUP LTD — Interim / Quarterly Report 2021

Feb 25, 2021

BetMakers Technology Group Ltd Appendix 4D Half-year report

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1. Company details

Name of entity: BetMakers Technology Group Ltd ABN: 21 164 521 395 Reporting period: For the half-year ended 31 December 2020 Previous period: For the half-year ended 31 December 2019

2. Results for announcement to the market

				$
Revenues from ordinary activities	up	88.0%	to	7,594,524
Loss from ordinary activities after tax attributable to the owners of
BetMakers Technology Group Ltd	up	697.2%	to	(4,435,045)
Loss for the half-year attributable to the owners of BetMakers
Technology Group Ltd	up	697.2%	to	(4,435,045)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the group after providing for income tax amounted to $4,435,045 (31 December 2019: $556,348).

The COVID-19 pandemic has had minimal financial impact on the group up to 31 December 2020. Staff adapted well to alternate working arrangements when required, and despite ongoing challenges, sport and racing has continued to operate globally during the period. This has meant that the group had a continued role to play in delivering its services to wagering operators. BetMakers’ clients have also continued to operate throughout the period, and as such, BetMakers has seen no noticeable impact on the recoverability of receivables as a result of the COVID-19 pandemic.

Further information on the 'Review of operations' is detailed in the Directors' report which is part of the Interim Report.

3. Net tangible assets

Net assets Less: Intangibles Less: Right-of-use (ROU) assets Add: Lease liabilities - current Add: Lease liabilities - non-current Net tangible assets Number of ordinary shares on issue Net tangible assets per ordinary security	Consolidated 31/12/2020 31/12/2019 $ $ 109,186,339 27,434,451 (19,109,636) (20,910,075) (519,183) (221,428) 160,079 148,370 418,706 92,306	Consolidated 31/12/2020 31/12/2019 $ $ 109,186,339 27,434,451 (19,109,636) (20,910,075) (519,183) (221,428) 160,079 148,370 418,706 92,306
	90,136,305	6,543,624
	Consolidated 31/12/2020 31/12/2019 601,501,846 473,489,993 Reporting period Previous period Cents Cents 14.99 1.38

BetMakers Technology Group Ltd Appendix 4D Half-year report

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4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Details of associates and joint venture entities

Not applicable.

7. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

8. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

9. Attachments

Details of attachments (if any):

The Interim Report of BetMakers Technology Group Ltd for the half-year ended 31 December 2020 is attached.

10. Signed

As authorised by the Board of Directors

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Signed _________

Date: 26 February 2021

Todd Buckingham Director Newcastle

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BetMakers Technology Group Ltd ABN 21 164 521 395

Interim Report - 31 December 2020

BetMakers Technology Group Ltd
Contents
31 December 2020
Directors' report	2
Auditor's independence declaration	4
Statement of profit or loss and other comprehensive income	5
Statement of financial position	6
Statement of changes in equity	7
Statement of cash flows	8
Notes to the financial statements	9
Directors' declaration	19
Independent auditor's review report to the members of BetMakers Technology Group Ltd	20

1

BetMakers Technology Group Ltd Directors' report 31 December 2020

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The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'group') consisting of BetMakers Technology Group Ltd (referred to hereafter as the 'company', "BET" or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2020.

Directors

The following persons were directors of BetMakers Technology Group Ltd during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Nicholas Chan - Chairman Todd Buckingham Simon Dulhunty Matt Davey (appointed 4 September 2020)

Principal activities

The group's principal activities during the financial half-year were the development and provision of data and analytic products for the B2B wagering market and the production and distribution of racing content.

Review of operations

The loss for the group after providing for income tax amounted to $4,435,045 (31 December 2019: $556,348).

Excluding depreciation and amortisation, income tax benefit and financing costs, the group's result was a loss of $4,981,595 (31 December 2019: a profit of $645,481). This includes $3,083,161 of share based payments expense and $831,355 in costs related to acquisitions.

The COVID-19 pandemic has had minimal financial impact on the group up to 31 December 2020. Staff adapted well to alternate working arrangements when required, and despite ongoing challenges, sport and racing has continued to operate globally during the period. This has meant that the group had a continued role to play in delivering its services to wagering operators. BetMakers’ clients have also continued to operate throughout the period, and as such, BetMakers has seen no noticeable impact on the recoverability of receivables as a result of the COVID-19 pandemic.

Significant changes in the state of affairs

During the half-year BetMakers continued to invest in the development of its global strategy.

This included signing fixed odds deals in the US with Pointsbet, and data distribution deals with a number of US race tracks. Whilst the company continues to wait for the legislation of fixed odds horse race betting in New Jersey, investment has continued to be made to assist a fast and scalable expansion once the bill is signed off by the Attorney General.

On 1 December 2020 BetMakers announced it had entered into binding agreements to acquire Sportech PLC’s Racing and Digital assets for a consideration of GBP 30.9 million. On 29 December 2020 the company announced that Sportech shareholders had approved the sale, and consequently BetMakers made a non-refundable initial payment of GBP 6.2 million.

To support the funding of the Sportech asset acquisition, on 2 December 2020 BetMakers announced it had received firm commitments to raise $50,000,000 (before costs) under a placement via the issue of approximately 83.3 million new fully paid ordinary shares at an offer price of $0.60.

In addition to the above, the company announced the launch of a $10,000,000 Share Purchase Plan to existing eligible investors, to issue new fully paid ordinary shares at an offer price of $0.60. This offer closed on 15 January 2021 and was oversubscribed.

There were no other significant changes in the state of affairs of the group during the financial half-year.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

2

BetMakers Technology Group Ltd Directors' report 31 December 2020

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This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

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Nicholas Chan Chairman

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_________ Todd Buckingham Director

26 February 2021 Newcastle

3

Betmakers Technology Group Limited

Auditor's Independence Declaration under section 307C of the Corporation Act 2001

I am pleased to provide the following declaration of independence to the directors of Betmakers Technology Group Limited.

As lead audit partner for the review of the financial statements of Betmakers Technology Group Limited for the half-year ended 31 December 2020, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

PKF

PAUL PEARMAN PARTNER

DATE: 26 FEBRUARY 2021 NEWCASTLE

Sydney Level 8, 1 O’Connell Street Sydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001 p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited Partnership ABN 91 850 861 839

Newcastle 755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309 p +61 2 4962 2688 f +61 2 4962 3245

Liability limited by a scheme approved under Professional p +61 2 8346 6000 p +61 2 4962 2688 Standards Legislation f +61 2 8346 6099 f +61 2 4962 3245 PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For office locations visit www.pkf.com.au 4

BetMakers Technology Group Ltd Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2020

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Note Revenue 3 Cost of sales Gross profit Other income 4 Interest revenue calculated using the effective interest method Expenses Employee benefits expense Professional fees Administration expenses IT expenses Occupancy expenses Depreciation and amortisation expense 5 Recovery of receivables 6 Share-based payments expense 17 Other expenses 5 Finance costs 5 Loss before income tax benefit Income tax benefit Loss after income tax benefit for the half-year attributable to the owners of BetMakers Technology Group Ltd Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of BetMakers Technology Group Ltd Basic earnings per share 16 Diluted earnings per share 16	Consolidated 31/12/2020 31/12/2019 $ $ 7,594,230 4,038,368 (3,592,039) (442,099) 4,002,191 3,596,269 - 250,000 294 1,014 (3,307,919) (1,966,569) (652,283) (332,896) (376,464) (335,708) (203,064) (559,450) (77,777) (31,386) (1,139,852) (1,066,269) - 259,472 (3,083,161) (188,567) (1,062,571) (46,698) (41,014) (237,790) (5,941,620) (658,578) 1,506,575 102,230 (4,435,045) (556,348) - - (4,435,045) (556,348) Cents Cents (0.75) (0.13) (0.75) (0.13)
	4,002,191
	- 294 (3,307,919) (652,283) (376,464) (203,064) (77,777) (1,139,852) - (3,083,161) (1,062,571) (41,014)
	(5,941,620) 1,506,575
	(4,435,045) -
	(4,435,045)
	Cents (0.75) (0.75)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

5

BetMakers Technology Group Ltd Statement of financial position As at 31 December 2020

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Note Assets Current assets Cash and cash equivalents Trade and other receivables 6 Deposit on acquisition 7 Prepayments Total current assets Non-current assets Trade and other receivables 6 Property, plant and equipment 8 Right-of-use assets 9 Intangibles 10 Deferred tax Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 11 Lease liabilities Employee benefits Other financial liabilities Total current liabilities Non-current liabilities Lease liabilities Employee benefits Other financial liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital 12 Reserves Accumulated losses Total equity	Consolidated 31/12/2020 30/06/2020 $ $ 68,636,514 31,624,870 1,654,407 1,999,721 11,006,821 - 294,448 60,393 81,592,190 33,684,984 1,388,003 839,207 323,494 235,496 519,183 465,555 19,109,636 20,072,068 9,461,907 7,295,014 30,802,223 28,907,340 112,394,413 62,592,324 2,045,039 1,284,051 160,079 112,727 402,792 265,778 - 16,452 2,607,910 1,679,008 418,706 350,214 181,458 137,354 - 25,021 600,164 512,589 3,208,074 2,191,597 109,186,339 60,400,727 135,943,547 84,943,067 3,793,569 1,573,392 (30,550,777) (26,115,732) 109,186,339 60,400,727
	81,592,190
	1,388,003 323,494 519,183 19,109,636 9,461,907
	30,802,223
	112,394,413
	2,045,039 160,079 402,792 -
	2,607,910
	418,706 181,458 -
	600,164
	3,208,074
	109,186,339
	135,943,547 3,793,569 (30,550,777)
	109,186,339

The above statement of financial position should be read in conjunction with the accompanying notes

6

BetMakers Technology Group Ltd Statement of changes in equity For the half-year ended 31 December 2020

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Consolidated Balance at 1 July 2019 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Share-based payments (note 17) Balance at 31 December 2019 Consolidated Balance at 1 July 2020 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 12) Share-based payments (note 17) Balance at 31 December 2020	Issued capital $ 42,417,857 - -	Reserves $ 713,641 - -	Accumulated losses $ (23,975,181) (556,348) -	Total equity $ 19,156,317 (556,348) -
	- 8,645,914 -	- - 188,567	(556,348) - -	(556,348) 8,645,914 188,567
	51,063,771	902,208	(24,531,529)	27,434,450
	Issued capital $ 84,943,067 - -	Reserves $ 1,573,392 - -	Accumulated losses $ (26,115,732) (4,435,045) -	Total equity $ 60,400,727 (4,435,045) -
	- 51,000,480 -	- - 2,220,177	(4,435,045) - -	(4,435,045) 51,000,480 2,220,177
	135,943,547	3,793,569	(30,550,777)	109,186,339

The above statement of changes in equity should be read in conjunction with the accompanying notes

7

BetMakers Technology Group Ltd Statement of cash flows For the half-year ended 31 December 2020

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Note Cash flows from operating activities Receipts from customers - net Payments to suppliers and employees Interest received Interest and other finance costs paid Research and development tax rebate received Income taxes paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for security deposits 7 Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares 12 Proceeds from shares to be issued 12 Share issue transaction costs Repayment of lease liabilities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial half-year	Consolidated 31/12/2020 31/12/2019 $ $ 7,858,488 3,201,190 (9,699,912) (3,862,752) - 1,014 (16,986) (192,397) 584,028 634,847 (15,560) (5,692) (1,289,942) (223,790) (108,750) (51,475) (11,006,821) - (11,115,571) (51,475) 1,645,170 2,760,000 50,000,000 - (2,091,500) (173,095) (126,838) (65,467) 49,426,832 2,521,438 37,021,319 2,246,173 31,624,870 453,104 (9,675) - 68,636,514 2,699,277
	(1,289,942)
	(108,750) (11,006,821)
	(11,115,571)
	1,645,170 50,000,000 (2,091,500) (126,838)
	49,426,832
	37,021,319 31,624,870 (9,675)
	68,636,514

The above statement of cash flows should be read in conjunction with the accompanying notes

8

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 1. General information

The financial statements cover BetMakers Technology Group Ltd as a group consisting of BetMakers Technology Group Ltd (the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year (referred to in these financial statements as the 'group'). The financial statements are presented in Australian dollars, which is BetMakers Technology Group Ltd's functional and presentation currency.

BetMakers Technology Group Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

22 Lambton Road Broadmeadow, NSW 2292

A description of the nature of the group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 February 2021.

Note 2. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below.

Recoverability of intangible assets and deferred tax assets

During the period, the group incurred a net loss after tax of $4,435,045 (Dec 2019: $556,348) and net operating cash outflows of $1,289,942 (Dec 2019: $223,790). The company has prepared cash flow forecasts as at 31 December 2020 to determine the recoverability of the group’s intangibles and deferred tax assets.

The key assumptions underlying these forecasts are as follows:

• Completion of the Sportech asset acquisition;

• Continuation of existing Platforms, Managed Trading Services, Global Betting Services ('GBS') and DynamicOdds business performance with modest growth achieved;

• The successful expansion of the global racing content product; and

• Launch of fixed odds wagering in the USA.

The directors are confident of achieving these assumptions. Should the above assumptions not be realised, the group may be unable to realise its intangibles and deferred tax assets.

New or amended Accounting Standards and Interpretations adopted

The group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the group during the financial half-year ended 31 December 2020 and are not expected to have any significant impact for the full financial year ending 30 June 2021.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

9

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 3. Operating segments

Identification of reportable operating segments

The group operates in three segments being content and integrity, wholesale wagering products and corporate. This is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

The information reported to the CODM is on at least a monthly basis. The financial information presented in these financial statements are the same as that presented to the CODM.

Types of products and services

The principal products and services of each of these operating segments are as follows: Content and integrity The group assists racing bodies and rights holders in producing and distributing race content. This includes services such as barrier technology, official price calculation, vision and pricing distribution.

Wholesale wagering products The group provides customers with a variety of racing data and analytical tools. This includes basic race data such as pricing, runners, and form, analytical tools to consume and leverage the data, and wagering tools such as platforms and the Global Tote.

Operating segment information

Consolidated - 31/12/2020 Revenue Sales to external customers Total revenue Segment result Depreciation and amortisation Profit/(loss) before income tax expense Income tax expense Profit after income tax expense Unallocated segment results Depreciation and amortisation Finance costs Share option expense Loss before income tax benefit Income tax benefit Loss after income tax benefit Assets Segment assets Unallocated assets Total assets Liabilities Segment liabilities Unallocated liabilities Total liabilities	Content & integrity $ 1,820,077	Wholesale wagering products $ 5,774,153	Total $ 7,594,230
	1,820,077	5,774,153	7,594,230
	(183,076) (117,291)	1,230,199 (845,150)	1,047,123 (962,441)
	(300,367)	385,049	84,682 -
	1,949,107	19,218,098
			84,682 (2,754,234) (177,411) (11,496) (3,083,161)
			(5,941,620) 1,506,575
			(4,435,045)
			21,167,205 91,227,208
	635,625	326,031
			112,394,413
			961,656 2,246,418
			3,208,074

10

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 3. Operating segments (continued)

Consolidated - 31/12/2019 Revenue Sales to external customers Total revenue Segment result Depreciation and amortisation Profit before income tax expense Income tax expense Profit after income tax expense Unallocated segment results Depreciation and amortisation Research and development tax rebate Finance costs Share option expense Provision write-back Loss before income tax benefit Income tax benefit Loss after income tax benefit Consolidated - 30/06/2020 Assets Segment assets Unallocated assets Total assets Liabilities Segment liabilities Unallocated liabilities Total liabilities Revenue by geographical area	Content & integrity $ 873,649	Wholesale wagering products $ 3,164,719	Total $ 4,038,368
	873,649	3,164,719	4,038,368
	301,697 (193,977)	1,661,543 (742,938)	1,963,240 (936,915)
	107,720	918,605	1,026,325 -
	2,067,396	19,387,013
			1,026,325 (1,638,664) (129,354) 250,000 (237,790) (188,567) 259,472
			(658,578) 102,230
			(556,348)
			21,454,409 41,137,915
	296,705	323,079
			62,592,324
			619,784 1,571,813
			2,191,597
Australia and New Zealand United Kingdom United States of America Rest of the world		Sales to external customers 31/12/2020 31/12/2019 $ $ 5,279,320 3,166,634 895,978 497,358 514,723 374,376 904,209 -
		7,594,230	4,038,368

	Sales to	external
	customers
	31/12/2020	31/12/2019
	$	$
Australia and New Zealand	5,279,320	3,166,634
United Kingdom	895,978	497,358
United States of America	514,723	374,376
Rest of the world	904,209	-
	7,594,230	4,038,368

Revenue is recognised at the point the services are transferred.

11

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 4. Other income

Consolidated

Research and development tax rebate Note 5. Expenses Loss before income tax includes the following specific expenses: Depreciation Leasehold improvements Plant and equipment Computer equipment Furniture and fittings Plant and equipment right-of-use assets Total depreciation Amortisation Software Intellectual property Total amortisation Total depreciation and amortisation Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Finance costs expensed Other expenses Deal costs * Marketing expenses Others Total other expenses	31/12/2020 $ -
	177,420
	808,653 153,779
	962,432
	1,139,852
	16,008 25,006
	41,014
	831,355 139,782 91,434
	1,062,571

• Deal costs primarily relate to professional fees incurred in relation to the acquisition of the Sportech Racing and Digital assets. Refer to notes 7 and 12 for further details.

12

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 6. Trade and other receivables

Current assets Trade receivables Other receivables Research and development tax receivable Rental bonds Non-current assets Trade receivables Employee Share Loan receivable	Consolidated 31/12/2020 30/06/2020 $ $ 1,154,990 1,232,208 425,026 127,302 - 584,027 74,391 56,184 499,417 767,513 1,654,407 1,999,721 616,339 67,543 771,664 771,664 1,388,003 839,207 3,042,410 2,838,928
	425,026 - 74,391
	499,417
	1,654,407
	616,339 771,664
	1,388,003
	3,042,410

Employee Share Loans were extended to select employees in March 2015 for the purpose of purchasing shares in OM Group Holdings (the parent entity prior to IPO). The loans are repayable upon receipt of dividends or sale of shares.

Allowance for expected credit losses

The group has recognised $nil (2019: a recovery of $259,472) in profit or loss in respect of the expected credit losses for the period ended 31 December 2020.

Note 7. Deposit on acquisition

$11,006,821 relates to the initial payment made by the company to Sportech PLC in relation to the acquisition of the Sportech Racing and Digital assets. This payment was made upon Sportech PLC receiving shareholder approval for the acquisition and is non-refundable.

Refer to note 12 for further details.

13

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 8. Property, plant and equipment

Non-current assets Leasehold improvements - at cost Less: Accumulated depreciation Plant and equipment - at cost Less: Accumulated depreciation Computer equipment - at cost Less: Accumulated depreciation Furniture and fittings - at cost Less: Accumulated depreciation	Consolidated 31/12/2020 30/06/2020 $ $ 179,098 166,881 (135,293) (118,694)	Consolidated 31/12/2020 30/06/2020 $ $ 179,098 166,881 (135,293) (118,694)
	43,805	48,187
	4,888 (3,068)	4,888 (2,888)
	1,820	2,000
	621,000 (411,079)	511,339 (366,378)
	209,921	144,961
	212,730 (144,782)	161,008 (120,660)
	67,948	40,348
	323,494	235,496

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 1 July 2020 Additions Exchange differences Depreciation expense Balance at 31 December 2020	Leasehold improvements $ 48,187 12,030 234 (16,646)	Plant and equipment $ 2,000 - - (180)	Computer equipment $ 144,961 109,661 - (44,701)	Furniture and fittings $ 40,348 50,260 1,462 (24,122)	Total $ 235,496 171,951 1,696 (85,649)
	43,805	1,820	209,921	67,948	323,494

Note 9. Right-of-use assets

Non-current assets Plant and equipment - right-of-use Less: Accumulated depreciation	Consolidated 31/12/2020 30/06/2020 $ $ 746,274 607,101 (227,091) (141,546)	Consolidated 31/12/2020 30/06/2020 $ $ 746,274 607,101 (227,091) (141,546)
	519,183	465,555

The group leases land and buildings for its offices of between 2 to 5 years with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.

The group leases photocopier office equipment. These leases are low-value, so have been expensed as incurred and not capitalised as right-of-use assets.

14

BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 9. Right-of-use assets (continued)

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 1 July 2020 Additions Depreciation expense Balance at 31 December 2020	Plant and equipment $ 465,555 145,399 (91,771)
	519,183

Note 10. Intangibles

Non-current assets Goodwill - at cost Less: Impairment Intellectual property - at cost Less: Accumulated amortisation Software - at cost Less: Accumulated amortisation	Consolidated 31/12/2020 30/06/2020 $ $ 16,257,658 16,257,658 (1,802,453) (1,802,453)	Consolidated 31/12/2020 30/06/2020 $ $ 16,257,658 16,257,658 (1,802,453) (1,802,453)
	14,455,205	14,455,205
	1,510,315 (1,068,697)	1,510,315 (914,918)
	441,618	595,397
	7,859,859 (3,647,046)	7,859,859 (2,838,393)
	4,212,813	5,021,466
	19,109,636	20,072,068

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 1 July 2020 Amortisation expense Balance at 31 December 2020	Goodwill $ 14,455,205 -	Intellectual property $ 595,397 (153,779)	Software $ 5,021,466 (808,653)	Total $ 20,072,068 (962,432)
	14,455,205	441,618	4,212,813	19,109,636

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BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 11. Trade and other payables

Current liabilities Trade payables Accrued expenses Goods and services tax ('GST') payable Other payables	Consolidated 31/12/2020 30/06/2020 $ $ 949,565 620,239 874,071 558,712 3,842 65,009 217,561 40,091 2,045,039 1,284,051
	2,045,039

Note 12. Issued capital

31/12/2020 Shares Ordinary shares - fully paid 601,501,846 Unissued equity - 601,501,846 Movements in ordinary share capital Details Date Balance 1 July 2020 Shares issued 17 July 2020 Exercise of options 17 July 2020 Shares issued 31 August 2020 Exercise of options 31 August 2020 Shares issued 4 September 2020 Exercise of options 4 September 2020 Shares issued 4 September 2020 Exercise of options 4 September 2020 Shares issued 9 September 2020 Exercise of options 9 September 2020 Shares issued 25 September 2020 Exercise of options 25 September 2020 Shares issued 2 November 2020 Exercise of options 2 November 2020 Shares issued 8 December 2020 Exercise of options 8 December 2020 Transaction costs Balance 31 December 2020	31/12/2020 Shares 601,501,846 -	Consolidated 30/06/2020 31/12/2020 Shares $ 568,539,998 85,943,547 - 50,000,000	Consolidated 30/06/2020 31/12/2020 Shares $ 568,539,998 85,943,547 - 50,000,000	30/06/2020 $ 84,943,067 - 84,943,067 $ 84,943,067 60,000 27,000 488,400 28,800 1,000,020 603,340 - 32,328 - 49,000 21,750 17,113 15,000 9,000 60,000 96,400 (1,507,671) 85,943,547
	601,501,846	568,539,998	135,943,547
		Shares 568,539,998 1,000,000 - 4,000,000 - 16,667,000 - 854,224 - 8,828,124 - 362,500 - 250,000 - 1,000,000 - - 601,501,846	$0.060 $0.000 $0.122 $0.000 $0.060 $0.000 $0.000 $0.000 $0.000 $0.000 $0.060 $0.000 $0.060 $0.000 $0.060 $0.000 $0.000

Movements in ordinary share capital

In December 2020, the company announced the acquisition of the Sportech racing and digital assets. As part of this transaction, the company undertook a placement to institutional and sophisticated investors to raise $50,000,000 (before costs) via the issue of approximately 83.3 million new fully paid ordinary shares at an offer price of $0.60. As at 31 December, the company had received the funds in full, but did not issue the corresponding shares until 4 January 2021.

Note 13. Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

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BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 14. Contingent liabilities

As announced on 5 February 2020, the company signed an agreement to deliver and manage fixed odds horse racing into New Jersey along with the exclusive distribution of Monmouth Park racing content throughout other parts of the United States and internationally. The company will pay Monmouth park a fee equal to a percentage of the turnover of approved wagering operators in relation to the distribution of Monmouth data in the US domestic market. The company has guaranteed that a minimum of US$5.0 million in fees will be paid to Monmouth over the initial 5-year term of the agreement.

On 1 December 2020, the company announced it had entered into binding agreements to acquire Sportech PLC’s Racing and Digital assets for GBP 30,900,000. Upon receiving Sportech shareholder approval for the sale, BetMakers made a non-refundable initial payment of GBP 6,180,000. As at 31 December 2020, BetMakers is liable to pay Sportech the residual GBP 24,720,000 upon Completion of the transaction.

Note 15. Related party transactions

Parent entity

BetMakers Technology Group Ltd is the parent entity.

Transactions with related parties

There were no transactions with related parties during the current and previous financial half-year.

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties

The following balances are outstanding at the reporting date in relation to loans with related parties:

	Consolidated	Consolidated
	31/12/2020	30/06/2020
	$	$
Current receivables:
Loan to key management personnel *	360,922	360,922

• As detailed in note 6, the group issued Employee Share Loans in March 2015. Those loans are repayable upon payment of a dividend or upon share sale. As at 31 December 2020, $360,922 (30 June 2020: $360,922) of share loans related to key management personnel.

Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

Note 16. Earnings per share

Loss after income tax attributable to the owners of BetMakers Technology Group Ltd Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share	Consolidated 31/12/2020 31/12/2019 $ $ (4,435,045) (556,348)	Consolidated 31/12/2020 31/12/2019 $ $ (4,435,045) (556,348)
	Number 589,333,242	Number 432,988,206
	589,333,242	432,988,206

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BetMakers Technology Group Ltd Notes to the financial statements 31 December 2020

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Note 16. Earnings per share (continued)

	Cents	Cents
Basic earnings per share	(0.75)	(0.13)
Diluted earnings per share	(0.75)	(0.13)

128,612,500 options over ordinary shares are not included in the calculation of diluted earnings per share because they are antidilutive for the half-year ended 31 December 2020. These options could potentially dilute basic earnings per share in the future.

Note 17. Share-based payments

The long-term incentives plan ('LTIP') program has been established by the group. Subject to the ASX listing rules and under the terms of the LTIP, the Board may grant options and/or performance rights (options with a zero exercise price) to eligible participants ('awards'). Each award granted represents a right to receive one share once the award vests and is exercised by the relevant participant.

During the period the group has issued 2,050,000 options to employees. The share based payment expense for the period in relation to options is $433,048.

Performance rights

As part of the commercial agreements that involve the Waterhouse Group providing ongoing services ot the Managed Trading Services division and the launch of tomwaterhouse.com betting application, the company agreed to issue performance rights (convertible into options) to Waterhouse VC. On 27 May 2020, upon receiving shareholder approval, the company issued Waterhouse VC 4 performance rights.

The share based payment expense for the performance rights granted during the period was recognised in the profit or loss of $2,650,113.

For the options and performance rights granted during the current financial half-year, the valuation model inputs used to determine the fair value at the grant date, are as follows:

		Share price	Exercise	Expected	Dividend	Risk-free	Fair value
Grant date	Expiry date	at grant date	price	volatility	yield	interest rate	at grant date
02/11/2020	30/09/2023	$0.410	$0.450	80.00%	-	0.11%	$0.198
02/11/2020	30/09/2023	$0.410	$0.500	80.00%	-	0.11%	$0.187
08/12/2020	31/10/2023	$0.635	$0.500	80.00%	-	0.10%	$0.362

Note 18. Events after the reporting period

On 5 January 2021, the company opened a non-underwritten $10,000,000 Share Purchase Plan (“SPP”) at an issue price of $0.60 per share. The offer closed on 15 January 2021 and was oversubscribed. The funds will be applied toward the company’s acquisition of the Sportech Racing and Digital assets and for general working capital.

On 17 February 2021, the company announced that it had entered into an exclusive agreement with Mr Matt Tripp to become a strategic advisor. In addition to this, Mr Tripp also agreed to subscribe for $25,000,000 of new ordinary shares in the company at an issue price of $0.70 per share. The company also received firm commitments of $50,000,000 from several existing shareholders, also at an issue price of $0.70 per ordinary share.

The COVID-19 pandemic has had minimal financial impact on the group up to 31 December 2020. Staff adapted well to alternate working arrangements when required, and despite ongoing challenges, sport and racing has continued to operate globally during the period globally. This has meant that the group had a continued role to play in delivering its services to wagering operators. BetMakers’ clients have also continued to operate throughout the period, and as such, BetMakers has seen no noticeable impact on the recoverability of receivables as a result of COVID-19.

No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the group's operations, the results of those operations, or the group's state of affairs in future financial years.

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BetMakers Technology Group Ltd Directors' declaration 31 December 2020

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In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the group's financial position as at 31 December 2020 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

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Nicholas Chan Chairman 26 February 2021 Newcastle

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_________ Todd Buckingham Director

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF BETMAKERS TECHNOLOGY GROUP LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Betmakers Technology Group Limited (the “consolidated entity”), which comprises the consolidated statement of financial position as at 31 December 2020, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes, and the directors’ declaration.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Betmakers Technology Group Limited is not in accordance with the Corporations Act 2001 including:-

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2020, and of its financial performance for the half-year ended on that date; and

• (b) complying with the Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. In accordance with the Corporations Act 2001, we have given the directors’ of the company a written Auditor’s Independence Declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors’ of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with the Australian Accounting Standards and the Corporations Regulations 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Sydney Level 8, 1 O’Connell Street Sydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001 p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited Partnership ABN 91 850 861 839

Newcastle 755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309 p +61 2 4962 2688 f +61 2 4962 3245

Liability limited by a scheme approved under Professional p +61 2 8346 6000 p +61 2 4962 2688 Standards Legislation f +61 2 8346 6099 f +61 2 4962 3245 PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For office locations visit www.pkf.com.au 20

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company’s financial position as at 31 December 2020 and its performance for the half year ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Betmakers Technology Group Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

PKF

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PAUL PEARMAN PARTNER 26 FEBRUARY 2021 NEWCASTLE, NSW

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