The Board of TopBetta Holdings Limited (ASX:TBH) ("TBH" or the "Company") is pleased to announce that each of The Global Tote Ltd ("The Global Tote") and TopBetta Pty Ltd ("TopBetta") has been granted a licence to operate in the US market.
- The Global Tote receives tote licence to provide facilities for pool betting in the US market
- TopBetta receives Advance-Deposit Wagering licence to operate retail pari-mutuel betting business in the US
The Global Tote, the Company's wholly-owned subsidiary, based in Alderney, has received licensing approval to operate an international tote in the US. This will allow approved US-licensed wagering operators (US Operators) to access global pools provided by The Global Tote subject to the US Operators individually receiving approvals from relevant racing bodies to offer betting on their racing content.
In addition, TopBetta has been granted an Advance-Deposit Wagering licence ("ADW") by the North Dakota Racing Commission ("NDRC"). This licence will allow TopBetta to offer pari-mutuel betting to the US public within the 35 US states to which the ADW applies and which currently allow online wagering.
For some remaining US states not covered by the ADW but which do allow online wagering, the Company will seek individual approvals from such states in due course.
Both licences are conditional upon the US' Thoroughbred Racing Protection Bureau (TRPB) successfully completing further due diligence examination in respect of the Company and its subsidiaries within 12 months. The Company does not anticipate any complications arising from these investigations and confirms that each of TopBetta and The Global Tote are authorised to commence operations, notwithstanding the requirement to complete the background investigations and will look to commence US operations during the last half of 2017.
TopBetta CEO, Todd Buckingham, commented:
"This really completes the immediate regulatory requirements for The Global Tote and gives the Company the reach to leverage the business as a true global player in online wagering.
"The US market is exciting for both our wholesale and retail divisions, especially as we see it as under-developed and with huge potential.
"The wholesale Global Tote will work with existing ADWs in the US market as well as any major global wagering organisations trying to enter the US market ahead of any regulatory changes that would allow sports betting. Given the fact that the only online wagering currently allowed in the US is betting on racing through pari-mutuel wagering, The Global Tote is positioned perfectly to assist with those operators wanting to stay ahead of the market.
"The Global Tote is also now well positioned to be able to assist with racing bodies globally looking to get access to the US pool of customers. The off-course online wagering market (ADW) is growing rapidly and now accounts for more than 25% of all wagers on US racing.
"Our retail license (ADW) will allow TopBetta to enter the US market, getting access to both high-end punters and recreational punters. Competition in the ADW space is presently limited, however we see this changing over the next few years as global wagering operators look at avenues to enter the US prior to any changes with sports betting regulation."
The Company is also looking for partnership and acquisition opportunities within both the US and UK markets and looks forward to updating the market should any of these opportunities materialise.
Charly Duffy Company Secretary E: email@example.com T: +61-409-083-780 Jane Morgan Investor & Media Relations E: firstname.lastname@example.org T: +61-405-555-618
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