Australian bookmaker Mark Read's IASbet wagering group today announced an agreement to buy a 50 percent stake in Internet Betting Co., a Gibraltar-based company established 10 months ago by Eurobet.
The Darwin-based sports betting operation will pay no money for its IBC interest; instead Read and his staff will provide "expertise in racing and sports wagering" as compensation.
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"The IBC acquisition is an important element of IAS's plan for international growth and diversification of its range of products, services and markets."
-Mark Read
IASbet
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In a media announcement via the Australian Stock Exchange (ASX), Read said IASbet expects to see annual turnover reach AU$1 billion.
Read said the combined turnover for IBC's two Internet betting sites, Swapbets.com and Odds4you.com, is more than AU$34 million a week.
The acquisition of Swapbets.com, an online betting exchange, thrusts IASbet into the P2P space. Expected to turn a profit in its first year, the site generates more than AU$17 million a week in turnover, and Read expects that amount to increase when IASbet's racing and sports products are integrated.
IBC operates Odds4you.com, an online sports book, for an Asian marketing company; IASbet hopes to profit from that company's annual services fees.
IBC will help sell the Swapbets.com and IASbet racing and sports products to Odds4you.com customers.
The integration of IBC's and IASbet's databases and backend systems is underway. Officials from both companies have targeted mid September for the launch of the new expanded Swapbets.com site.
In the meantime, Australian racing ministers are considering their position on the licensing and use of betting exchanges in Australia.
Officials with IASbet would prefer that an Australian license is made available, but have indicated that this won't be necessary.
"Swapbets.com is a truly international business, and the IBC acquisition is not dependent on an Australian betting exchange license being issued to IAS," the company said in a statement.
The deal is expected to be good for IASbet's bottom line, but it was ultimately sought as a vehicle for global expansion.
"We are focusing on the global opportunities, not so much national opportunities," Read explained. "The IBC acquisition is an important element of IAS's plan for international growth and diversification of its range of products, services and markets."
IASbet also recently acquired wagering and investment company Ferncourt, a deal that should give the IASbet greater access to horse racing in Hong Kong.
The IBC acquisition is subject to a due diligence process by the parties.