The BetMakers Technology Group Ltd (ASX: BET) share price emerged from its trading halt this morning and jumped higher before dropping below its opening price.
At the time of writing, the Betmakers share price is trading down 2.07% at 71 cents. Let's take a look.
Image source: Getty Images
Why is the BetMakers share price so volatile?
Shares in the Aussie betting group surged nearly 7% higher this morning after the company announced a new international distribution deal.
BetMakers has signed a new agreement with Prime Sports Jamaica Limited (PSJ) and Supreme Ventures Racing and Entertainment Limited (SVREL). Both entities are wholly-owned by Supreme Ventures Limited.
The new 5-year agreement will see BetMakers secure the rights to manage fixed odds wagering on all horse racing through SVREL channels. The agreement also gives the wagering group the right to distribute and manage all racing data through the channels.
BetMakers says it believes the agreement will have a "material impact" on the company's revenues.
The company has also entered into a sponsorship agreement with SVREL.
That agreement will see BetMakers take exclusive naming and branding rights to a new trainers pavilion to be constructed at Caymanas Park and be a named sponsor with broad advertising rights at key events.
How have BetMakers shares performed this year?
Today's announcement is the latest in a long line of partnership agreeements from BetMakers.
Shares in the Aussie wagering group have rocketed more than 400% higher since the start of the year. That's partly due to the coronavirus pandemic which has seen a surge in gambling popularity around the world.
The BetMakers share price is currently trading at 71 cents per share, roughly 10% shy of its 80 cents per share 52-week high.
The Aussie company has a market capitalisation of $430.1 million with a 4.9% dividend yield at the time of writing.
In contrast, the S&P/ASX 300 Index (ASX: XKO) has fallen 0.7% to 6,622 points.
