Australian gaming group Tabcorp has agreed to acquire a 20% equity interest in social digital wagering platform Dabble Sports for Aus$33.0m (£19.0m/€21.5m/US$20.9m).
Under the agreement, Tabcorp will purchase the stake on a fully diluted basis and secure the right to appoint a director to the Dabble board.
Founded in 2020, Dabble has over 150,000 customers and offers users a socialised betting experience. In June 2022, the business reported $47.0m in annualised revenue.
Tabcorp said the strategic investment in Dabble provides the group with both exposure to Dabble’s product capability and strength in the younger customer segment, with the two businesses to explore opportunities to create “win-win” innovation and growth.
In addition, Tabcorp said the investment aligns with its strategy to grow digital market share and follows the announcement last month that it had agreed to sell its eBet business for $62.0m.
The investment remains subject to certain, customary conditions including approval from the Northern Territory Racing Commission approval.
“We are transforming our company, with a clear strategy and united ambition to grow digital market share,” Tabcorp chief executive and managing director Adam Rytenskild said. “Dabble is one of the most unique and innovative wagering brands and our investment today fits perfectly with our transformation agenda.
“Our stake in Dabble will give us exposure to innovative product capability and ultimately to a younger customer base.
“The investment comes with the new TAB App now live on time, as promised. The launch of the app has had an immediate impact with customers, delivering an 11% increase in weekly active customers compared to the six weeks prior to launch.”
Dabble CEO Tom Rundle added: “We’re excited to partner with Tabcorp given their new energy and direction; and look forward to growing Dabble even further together. TAB is synonymous with punting in Australia and our brands will complement each other so that Dabble can continue to expand its evolutionary social betting experience to more punters.”
