BlueBet Holdings has made a significant move to consolidate its position in the Australian online wagering market by acquiring certain assets from Queensland bookmaker TopSport in a deal valued at $15 million. This strategic acquisition will help BlueBet further strengthen its market share, bringing it closer to its target of holding 10-15% of the domestic market. The deal, which includes the acquisition of TopSport’s customer base, intellectual property, brand, and key employees, marks another key step in BlueBet’s strategy to increase its presence in Australia’s competitive wagering landscape.

BlueBet’s vision for growth:

BlueBet’s latest acquisition is part of a broader strategy to drive growth through inorganic means. The company’s CEO, Andrew Menz, emphasized the importance of acquisitions in achieving BlueBet’s long-term goals. “The acquisition of TopSport materially enhances BlueBet’s profitability and scale, and brings us closer to our strategic target of 10%+ market share in Australia,” Menz said, as reported by Herald Sun.

BlueBet has also raised $15 million through an equity placement to fund the deal, which will see the company acquire a portion of TopSport’s business. This includes its well-established customer database and intellectual property, along with key material contracts.

Incorporating TopSport’s assets into BlueBet’s portfolio is expected to boost the company’s revenue and improve its overall performance. Menz noted that the transaction offers a “high conversion of Net Gaming Revenue to EBITDA,” allowing the company to leverage its investments in proprietary technology and its growing brand presence.

As part of the acquisition, Tristan Merlehan, CEO of TopSport, will join BlueBet’s executive team as Chief Trading Officer. Merlehan’s leadership and deep experience in the Australian wagering industry are expected to enhance BlueBet’s trading capabilities and help drive profitability. Merlehan expressed his confidence in BlueBet’s growth, stating in the company’s press release (pdf), “BlueBet’s recent and long-term record in successful customer migrations and scaling wagering businesses is unrivalled in this market, and I am pleased to play a key role in its bright future.”

TopSport’s founder, Lloyd Merlehan, along with his son Tristan, built a successful bookmaking operation over several decades, with the company generating $198.9 million in turnover and an $11.8 million net win in the first half of the 2025 financial year. TopSport’s model has focused on high-volume, low-margin punters, and BlueBet sees significant potential in integrating these assets with its existing operations.

The future of BlueBet and TopSport customers:

One of the key advantages of the acquisition is the “attractive wagering characteristics” of TopSport’s customers, particularly their skew towards sports betting. This aligns well with BlueBet’s strategic focus on growing its presence in the sports wagering market. As part of the deal, customers will continue to experience the same high level of service they’ve come to expect from TopSport, with additional benefits stemming from BlueBet’s technology platform.

Merlehan reassured customers that they would see no change in the service they receive, stating, “I am very proud of what we have achieved at TopSport and our customers will continue to receive the same levels of service going forward, together with the benefits of a significant uplift in their wagering experience.”

BlueBet’s acquisition is expected to significantly boost its earnings, with projections indicating a more than 30% increase in earnings per share (EPS) for the fiscal years 2026 and 2027. The deal is highly accretive for shareholders, providing both immediate and long-term value. Additionally, BlueBet’s proprietary technology and its recent merger with Betr provide a solid foundation for further market share growth and profitability improvements.

This acquisition follows BlueBet’s strong performance in the second quarter of fiscal year 2025, where turnover and net win saw impressive increases. The company recorded $357 million in turnover for Q2, an increase of 131% compared to the previous period. Gross win also surged by 146%, while net win jumped by 142%. These results were driven by a combination of organic growth, strategic customer reactivation, and the successful integration of BlueBet’s technology platform.

The transaction is expected to complete in April 2025, pending regulatory approvals and other closing conditions. The deal provides BlueBet with a unique opportunity to further consolidate its position in the Australian wagering market. Through the acquisition of TopSport’s assets, BlueBet is poised to continue its expansion, leveraging its technology, brand, and growing market presence to capture an even larger share of the Australian market.