News Corp’s Former Betting Venture Pays Out Thousands of Punters
News Corp’s previous foray into the Australian betting industry has finally paid out thousands of punters who backed Penrith to win the 2023 NRL grand final after a controversial 100-to-1 offer. The record-breaking $40 million payout from Betr marks the end of their infamous launch promotion, which allowed customers to place a $10 bet on various sporting events with 100-to-1 odds.
Delayed Payouts Cause Outcry
The fledgling wagering business, Betr, sent a letter to customers on Friday, warning them that they would not receive their winnings until October 6 at the latest. This announcement sparked outrage among punters. However, Betr managed to complete its payout on Wednesday afternoon, just one day before the deadline.
Betr attributes its success and growth to the inducement it offered. However, the way the company promoted the offer resulted in a $210,000 penalty from the NSW regulator shortly after its launch in October.
More Than 300,000 Punters Take Home $1000
Over 300,000 punters took home $1000 each after backing Penrith to win the NRL grand final. The winnings are normally issued instantaneously, but Betr had to manually build its market, leading to the delay in payouts. It is estimated that Betr’s exposure on Penrith, after hedging and cash-outs prior to the game, amounted to $18 million.
News Corp’s Involvement and Losses
Betr was launched last year ahead of the spring racing season as a consortium between News Corp, LA-based Tekkorp, and founder Matt Tripp’s investor vehicle TGW. However, News Corp executives were unhappy with the 100-to-1 odds offer and divested from their holding in February. News Corp injected $75 million into Betr but wrote down $52 million as a loss for the 2023 financial year.
Tekkorp is believed to have left the consortium before October due to funding issues. As a result, Tripp and his investors have owned 100% of the company since February. Tripp stated that Betr generated $225 million in gross profits from its customer base and hedged most of its inducement exposure through lay-off wagers and early pay-outs.
Conclusion
In conclusion, News Corp’s former betting venture, Betr, has paid out thousands of punters who backed Penrith to win the 2023 NRL grand final. The delayed payouts caused frustration among customers, but Betr managed to complete the payments just in time. Despite the controversy surrounding the launch offer and News Corp’s subsequent exit, Betr has seen significant growth and success in the industry.
“We had always anticipated [the launch] would cost us somewhere between $50 million and $80 million, depending on how the results fell. For us to have spent $72 million in hard costs, then probably another $20 million in marketing, we spent just under $100 million to generate more than double that.” – 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.
