News Corp Australia’s Failed Gambling Venture: A Risky Bet
“Success has many fathers,” quipped one senior News Corp executive. “Failure is an orphan.” This statement couldn’t be truer when it comes to News Corp Australia’s ill-fated foray into the gambling industry. The problems started long before the launch of their gambling platform, Betr, on October 12.
A Saturated Market
News Corp Australia’s CEO and chairman, Michael Miller, had been eyeing the sports betting market for some time. However, Rupert Murdoch, the non-executive co-chairman of News Corp, believed that the Australian market was already saturated with powerful players like Tabcorp, Sportsbet, and PointsBet. Despite this, Miller backed the strategic move and plans were set in motion to launch a new wagering platform.
The Trusted Operator
To oversee this high-risk venture, Miller placed his trust in Matt Tripp, an industry veteran with a proven track record. Tripp had previously acquired stakes in Sportsbet and BetEzy, which later became CrownBet. He was seen as a shrewd operator who could navigate the challenges of the sports betting industry.
A Three-Way Partnership
In April 2022, Betr was formed as a joint venture between Tripp’s group, News Corp Australia, and technology firm Tekkorp. Each party invested around $4 million, with the aim of becoming a prominent player in the Australian gambling market.
A Rocky Start
However, things quickly went downhill. Just weeks before the launch, Tekkorp’s founder, Matt Davey, announced that his company would not be contributing funds to the venture. This decision sent shockwaves through News Corp, forcing them to increase their investment and resulting in an uneven split of the shareholding.
A Risky Gamble
Despite initial success with 300,000 sign-ups within weeks, Betr faced significant challenges. The company was burning through cash and needed to scale quickly. News Corp’s share in liabilities was much larger than anticipated, and by February, the company decided to cut off all capital calls and exit the partnership.
A Costly Exit
News Corp had injected approximately $75 million into Betr, but had little to show for it. The company’s representatives on the board stepped down, and advertising spend was paused. After six months of silence, Betr finally notified the corporate regulator that News Corp Australia was no longer involved.
The Aftermath
Now owned solely by Matt Tripp and his group of investors, Betr claims to be profitable despite its recent massive payout. However, News Corp is unlikely to venture into the gambling industry again anytime soon.
“We haven’t re-entered this market to play second fiddle to anyone. We believe we will be – certainly a tier-one operator very quickly – but in time the most prominent brand in the country.” – Matt Tripp
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
