Tabcorp makes A$33m strategic investment in social sports betting platform Dabble
ASX-listed operator Tabcorp has agreed to make a A$33m strategic investment in the “fast growing, socialised digital wagering platform” Dabble Sports.
Tabcorp said Dabble, which was founded in 2020, is one of the fastest growing wagering brands in Australia, boasting more than 150,000 customers and generating some A$47m in annualised revenue (based on average monthly revenue during Q2 2022).It added that the business offers an innovative, socialised betting experience, providing access to a new customer market as a younger audience currently represents more than 80% of Dabble’s customer base.
Dabble’s product allows punters to follow each other’s betting activity, as well as that of verified tipsters and sports stars, while offering the option to copy others’ bets, chat with friends and comment on their activity.
Tabcorp has agreed to invest A$33m for a 20% equity interest in the business on a fully diluted basis, giving the business a total valuation of around A$165m.
Under the agreement, Tabcorp will also have the right to appoint a director to Dabble’s board.
The investment is subject to customary conditions including approval from the Northern Territory Racing Commission, while the appointment of a new director will be subject to probity approval.
Tabcorp said the investment provides it with both exposure to Dabble’s innovative product capability and increased strength in the younger customer segment.
Tabcorp managing director and CEO Adam Rytenskild: “Dabble is one of the most unique and innovative wagering brands and our investment today fits perfectly with our transformation agenda. Our stake in Dabble will give us exposure to innovative product capability and ultimately to a younger customer base.”
The firms “will explore opportunities to create win-win innovation and growth for both TAB and Dabble,” it added.
The investment aligns with Tabcorp’s existing strategy to grow its digital market share and follows the recently announced sale of its non-core eBet business.
“We are transforming our company, with a clear strategy and united ambition to grow digital market share,” said Tabcorp managing director and CEO Adam Rytenskild.
“Dabble is one of the most unique and innovative wagering brands and our investment today fits perfectly with our transformation agenda. Our stake in Dabble will give us exposure to innovative product capability and ultimately to a younger customer base.
“The investment comes with the new TAB App now live, on time, as promised. The launch of the app has had an immediate impact with customers, delivering an 11% increase in weekly active customers compared to the six weeks prior to launch,” Rytenskild concluded.
Dabble CEO Tom Rundle added: “We’re excited to partner with Tabcorp given their new energy and direction; and look forward to growing Dabble even further together. TAB is synonymous with punting in Australia and our brands will complement each other so that Dabble can continue to expand its evolutionary social betting experience to more punters.”