On 12 September, MIXI Australia completed its takeover of PointsBet, an online sportsbook and casino operator, by securing 66.43% of the overall voting power. This milestone marks the culmination of MIXI’s strategic maneuvering since the bid was first submitted in August. Initially, MIXI’s offer valued PointsBet at $1.25 in cash per share, with a potential increase to $1.30 if they achieved more than 90% control, an outcome hindered by Betr Entertainment’s opposition.
Betr Entertainment, holding a 19.9% stake, played a significant role in keeping MIXI from reaching the 90% threshold necessary for the higher offer. Consequently, the price per share remains at $1.25. Despite this, PointsBet’s shares were trading at $1.27 each at the time of writing, indicating market confidence.
This acquisition closes a protracted chapter in PointsBet’s history. Talks of a possible takeover have been circulating since late 2024, with Betr being initially identified as a potential acquirer in November. However, those reports were dismissed by PointsBet, only for MIXI to emerge with a formal proposal in February of this year, valuing PointsBet shares at $1.06 in cash for a complete 100% acquisition.
The competitive landscape intensified when Betr proposed a counter-offer valued at $360 million, blending a cash pool between $240 million and $260 million with additional considerations, including synergies worth at least $40 million annually. Despite this, the board of PointsBet later deemed MIXI’s revised offer superior.
In June, MIXI sweetened its bid to $1.20 per share, which led PointsBet’s board to reject Betr’s offer and endorse MIXI’s proposal. The shareholder vote largely favored MIXI, with 95.69% initially backing the offer. However, the proxy vote showed less overwhelming support, with 69.47% in favor.
Controversy erupted when Betr accused PointsBet of excluding its opposing votes without justification. An investigation revealed a system error responsible for the exclusion, prompting a recount, which resulted in 70.48% approval, still below the required threshold. This recount did not change the overall trajectory toward a MIXI-led takeover, as PointsBet continued to favor MIXI’s approach.
Despite Betr’s attempt to improve their offer—valued on paper at $1.40 per share—PointsBet remained steadfast in its preference for MIXI’s strategic vision and organizational fit. The end result sees MIXI comfortably securing a majority stake in PointsBet, a move that conclusively shifts the power dynamics within the company.
MIXI’s acquisition underscores the evolving challenges and competitive nature of the igaming sector. With regulatory landscapes ever-changing and market dynamics shifting, securing a significant foothold in an established operator like PointsBet allows MIXI to expand its influence and adapt to regional and global market trends.
From MIXI’s perspective, acquiring a majority stake is more than a financial transaction; it’s a strategic alignment with a company that offers synergies and growth opportunities within the igaming sector. Moreover, MIXI’s maneuvering throughout the bidding war illustrates a calculated approach to securing assets that complement its existing operations.
On the flip side, Betr’s inability to secure control of PointsBet may prompt the company to reassess its strategy and explore alternative growth avenues or partnerships within the industry. Their higher bid, although financially appealing, was ultimately less aligned with PointsBet’s long-term strategic goals, a critical factor in the board’s final decision.
In conclusion, the completion of MIXI’s takeover bid represents a significant shift in the igaming industry, highlighting the importance of strategic alignment and market positioning within acquisition endeavors. As the sector continues to grow and evolve, companies like MIXI are poised to leverage their expanded capabilities to drive further innovation and market penetration. Meanwhile, competitors like Betr must adapt and strategize to remain relevant and competitive in this rapidly changing environment.
Topics: Australia · Mergers and Acquisitions · Sports Betting · Gambling Regulation · Online Casino
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