TopBetta overcomes challenges thanks to Global Tote

TopBetta has proven small betting companies can compete in the competitive corporate bookmaker industry, with the release of its annual results.

The company based in Newcastle, New South Wales, released its annual results for the 2017 financial year with a 95 percent revenue increase to $5,621,636 from the turnover of $82,392,000.

Still Topbetta recorded an operating loss of $7,618,257, with this including a write down non cash good will of $1,802,453, from the company’s tips and news arm 12Follow.

TopBetta has scaled back its activity with 12Follow as a result of its performance over the last 12 months.

TopBetta, which is in its second year as a publicly listed company, also ceased all development of the e-Sports opportunity, GameBetta.

The company said its performance improved in the last quarter of FY17 when the Global Tote was launched, and TopBetta acquired the Mad Bookie online bookmaker service. Turnover for the quarter reached $42,459,000 and total revenue was $2,576,000.

“The Global Tote built up a state-of-the art tote platform, which was launched with limited coverage in May 2017,” TopBetta CEO Todd Buckingham said in his report.

“In addition, The Global Tote has established operations in Sri Lanka,” he said.

“We are confident the changing landscape of world wagering, of which Australia is a small but vibrant part, has opened the door for The Global Tote to position itself as an attractive product offering for all approved international wagering operators.”

The company also secured a UK and US licence in the past month which will allow TopBetta and its Global Tote product to expand.

The UK Gambling Commission licence will allow the company to launch the wholesale B2B platform in the UK market.

The US Advance-Deposit Wagering licence (ADW) will allow TopBetta to operate in the US, offering pari-mutuel betting to within the 35 states, which accept this type of wagering.

Buckingham said in the report that the company is “very excited by these expansion opportunities.”

In November last year, the company took a hit when the Australian government announced it would be shutting down the Norfolk Gaming Authority (NGA).

Buckingham said it created “an untenable situation with regard to our wagering licence.”

“TopBetta applied successfully for a new licence out of Northern Territory that included moving parts of our operation to the NT,” Buckingham explained.

Buckingham said the company managed to jump on an opportunity to “provide a pari-mutuel product as a business to business offering to the Global wagering market” at the same time.

The small betting business also offers unique sports and racing tournaments. Punters pay an entry fee in exchange for BettaBucks and use these to participate in the available tournaments.

However, the company plans to scale back the tournaments platform and pay more attention to the retail opportunities.

The company’s main focus going forward is the Global Tote product and the Mad Bookie acquisition.

“One of the key goals set down by the Board is for the Company to be operationally cash positive in the next six months,” Buckingham said.

“Our relative size and the formidable competition means TopBetta, from its Newcastle headquarters, has to be agile, innovative and resourceful to compete in the domestic market.”