The Betmakers Technology Group Ltd (ASX: BET) share price is today falling sharply as the company announced managing director, Todd Buckingham, is selling 8.5 million shares. The Betmakers share price is currently down 9.26% to a price of 49 cents.
The company also announced that it has appointed a United States resident as a non-executive director to aid in its growth agenda.
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What does Betmakers do?
Betmakers is an Aussie racing data supplier involved in the development and provision of data and analytics products. The company specialises in the production and distribution of racing content and the provision of data for the business to business wagering market. The group's revenue channels include Australia, the United Kingdom and the US.
Betmakers is focused on providing innovative industry and bookmaker solutions to improve industry coverage and the consumer experience.
US board appointment
The Betmakers share price is dropping sharply lower today although this likely has little to do with its new US board appointment. The company has announced that it has taken the next step in its global growth strategy by appointing a highly credentialed director to assist Betmakers with its international expansion.
Matt Davey will assist the board and management, bringing with him a deep knowledge of the US gaming and wagering market. Mr Davey was previously CEO of NYX Gaming Group, which was sold to Scientific Games Corp.
What's moving the Betmakers share price?
More likely contributing to the Betmakers share price decline is news that company founder, Todd Buckingham, is selling 8.5 million shares. However, it must be noted that Mr Buckingham is partly using the sale of shares to fund the exercise of 16,667,000 options and cover the associated tax obligations. As a result, his interest in the company will actually increase to 14.6 million shares from 6.5 million.
Regarding the sale Mr Buckingham stated:
As a founder of BetMakers, I am very proud of what the team has achieved over the last few years and the value that we have created for our shareholders. I am delighted that we have been able to build such a strong business which is now expanding into the US and other markets. I am incredibly excited about the next phase of the Company's growth strategy and I am exercising my options so that I can continue to participate in the BetMakers growth story.
Foolish takeaway
The Betmakers share price has been on an impressive run so far this year, gaining a huge 250%. While an insider sell down is never good news, shareholders can take refuge in the fact that Mr Buckingham is increasing his interest in the company. The Betmakers share price decline is perhaps more likely as a result of the Nasdaq Composite's pull back overnight.
