Tabcorp invests A$33m in Australian social betting startup
ASX-listed operator secures 20% stake in Dabble Sports with plans to tap into younger demographic and increase digital reach
Tabcorp has plunged a A$33m (£29.2m) investment into social betting platform startup Dabble Sports as it looks to reach a younger adult audience.
Dabble Sports was founded in 2020 and is one the fastest growing sports betting brands in Australia, boasting more than 150,000 customers and revenue of around A$47m in the year to June 2022.
Dabble Sports markets itself on an “innovative socialised betting experience” which allows players to copy bets, chat to other users and follow professional tipsters.
Tabcorp is looking to tap into Dabble Sports’ younger adult userbase, with the company noting the investment provided Tabcorp with “exposure to Dabble’s innovative product capability and strength in the younger customer segment”.
The two companies will also explore potential opportunities to develop innovation and growth projects for the TAB and Dabble.
Tabcorp also noted the investment aligned with the group’s plans to continue to grow its digital market share, which included the recent launch of its new TAB App which as seen an 11% increase in weekly active customers compared to the six weeks prior to launch.
Tabcorp’s multi-million-dollar investment will return a 20% equity interest in Dabble Sports and the opportunity to appoint a direct to the startup’s board.
The investment is subject to standard closing conditions, including the Northern Territory Racing Commission’s approval.
Adam Rytenskild, Tabcorp CEO, said: “We are transforming our company, with a clear strategy and united ambition to grow digital market share.
“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.’’
Tom Rundle, Dabble Sports CEO, said: “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,” he added.
Earlier this year, Tabcorp successfully demerged its lottery and keno segment, which saw the creation of two separate entities on the Australian Stock Exchange (ASX), in the shape of the newly formed Lottery Corporation and New Tabcorp.