Why is the BetMakers share price charging 7% higher today?

BetMakers shares are having a decent start to the day…

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Key points
  • BetMakers shares are pushing higher on Thursday
  • This follows the announcement of an agreement with Penn National Gaming
  • BetMakers now has the rights to offer Penn's racing content for fixed odds, booked bets, and exchange wagering outside the US and Canada

The BetMakers Technology Group Ltd (ASX: BET) share price is rising on Thursday morning.

At the time of writing, the betting technology company's shares are up 7% to 37 cents.

a group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottls in front of them cheering on one of their group as he looks excitedly at his phone as though he's just had some success on an online gambling app.

Image source: Getty Images

Why is the Betmakers share price rising?

The catalyst for the rise in the BetMakers share price is the release of a promising announcement.

According to the release, the company has been awarded the rights to offer Penn National Gaming's racing content for fixed odds, booked bets, and exchange wagering outside of the US and Canadian markets.

These rights include over 946 race meetings a year for distribution from 1 July 2022 to globally licensed wagering operators.

BetMakers's Global Racing Network currently delivers international racing content from more than 30 countries and offers rights holders new markets in which to monetise their racing. It receives a fee based on a percentage of turnover generated by wagering operators betting on the products in these new markets, while delivering rights holders new revenue.

Under the new agreement, BetMakers and Penn have agreed to a revenue share arrangement, with Penn to be paid a minimum guarantee amount annually. The term of agreement commenced on signing and will continue until 31 December 2025.

Management commentary

Partnerships Manager of BetMakers' Global Racing Network, Kerry Gatten, was very pleased with the agreement. Gatten stated:

We are delighted to offer Penn's first-rate content to a global audience and increase the awareness of the valuable content US racetracks have to offer.

It is exciting that we get to deliver Penn's extensive racing content into our network of operators globally.

Despite this and a couple of recent positive developments, the BetMakers share price is still down a disappointing 55% since the start of the year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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