It has been a remarkable and significant year for TopBetta in the second year as a publicly listed Company.
The wagering and gaming market in Australia is one of the most competitive and sophisticated markets in the world. TopBetta operates in a field of large and dominant local wagering businesses as well as global multi-nationals with substantial resources.
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.
All these attributes were tested during the 2017 financial year.
Our content and fantasy platforms were challenged by a raft of new entrants and product extensions of existing competitors.
The change in the status of the Norfolk Gaming Authority created not only a period of uncertainty for TopBetta but also, ultimately, 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.
At the same time, and a key highlight of our year, TopBetta identified an opportunity to provide a pari-mutuel product as a business to business offering to the Global wagering market. This was an ambitious project that required regulatory and licensing authorisation, establishment of a leading-edge technology platform and generation of sufficient liquidity.
The Global Tote, a subsidiary of TopBetta Holdings Limited, was established during August 2016. It holds a B2B eGambling license out of Alderney, UK.
Working with Modern Wagering Systems, The Global Tote built up a state-of-the art tote platform, which was launched with limited coverage in May 2017. In addition, The Global Tote has established operations in Sri Lanka.
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.
Internationally, The Global Tote received (in July 2017) its licence from the UK Gambling Commission to launch the wholesale B2B platform in the UK market. It has also applied for a licence to operate its pooled products in the US. The Company is very excited by these expansion opportunities.
In addition to the wholesale opportunities for The Global Tote, the retail business of TopBetta received approval for a UK licence in July 2017. It allows the Company to provide facilities for "real event betting" in the UK. TopBetta has also applied for an Advance-Deposit Wagering licence ("ADW) in the US, which if successful would afford TopBetta similar rights in the US as an Australian corporate bookmaker's licence does in Australia (although only pari-mutuel betting is permitted and not fixed odds).
During the last quarter of 2017, TopBetta acquired the wagering operations of Melbourne-based online bookmaker Mad Bookie to support our retail wagering business of TopBetta. This was completed in early June and results are in line with expectations.
It is now clear to both management and the board that the strategic priorities of the Company are:
(i) our wholesale business of The Global Tote; and
(ii) the retail wagering operations of TopBetta and Mad Bookie.
In line with these priorities, we have wound back our activity in 12Follow, our content arm, and the promotional investment in our tournament (fantasy) activity. We have also stopped development of the e-Sports opportunity, GameBetta.
As we announced in our most recent Quarterly Report, the fantasy tournaments platform continues to be a part of the Company's longer-term strategy but resources have been scaled back in the interim as the Company continues to deliver on the wholesale and retail wagering priorities.
The financial results for the June 30, 2017 year reflect the emerging nature of our business. Revenues grew 95% to $5,621,636 from turnover of $82,392,000. The Company delivered a loss of $7,618,257 that included the write down (noncash) of the 12Follow goodwill of $1,802,453.
The most encouraging aspect of our business was the turnover and revenues generated in the June 2017 Quarter. The quarter included the launch of The Global Tote and the integration of Mad Bookie and saw turnover reach $42,459,000 for the quarter and total revenue of $2,576,000.
During the year, the Company raised a further $8,094,577 in capital through Placements and more recently the Share Placement Plan ("SPP").
One of the key goals set down by the Board is for the Company to be operationally cash positive in the next 6 months.
Management and the Board sees the next 12 to 18 months as a defining period as the Company moves into the implementation phase of its strategy.
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About Topbetta Holdings Ltd
The Company has built proprietary technology platforms that combine an online racing and sports wagering offering with a fantasy wagering platform and enables sports fans to compete against each other via online tournaments.
Topbetta Holdings Ltd