Betr faces record promo payment of AU$72 million for Penrith Panthers’ NRL victory

October 2, 2023 iGaming & Gambling Sports

Online bookmaker Betr is preparing for a promotional payment that will exceed all previous records in Australia, totaling a stunning AU$72 million (US$46 million).

This reward comes after Betr’s launch promotion from the previous year, during which they offered odds of 100-1 to brand-new clients who accurately picked the winners of a variety of sporting events, including as the NRL, AFL, NBA, FIFA World Cup, or Melbourne Cup. Around 320,000 individuals took advantage of the deal, which had a restriction for each wager of AU$10, with the Penrith Panthers being the clear favourite.

The Panthers won their third straight NRL championship with a dramatic comeback triumph, overturning a 16-point deficit in the second half to win 26-24 in the championship game. The Panthers began the 2023 NRL season as strong favourites to win the title.

Despite having to pay out a large AU$72 million, sources from The Sydney Morning Herald suggest that Betr is still in a good position because of how well its marketing strategy attracted new consumers. Matthew Tripp, the chairman of Betr, said that the bookmaker had used early payments and layoff bets to hedging their bets.

Tripp emphasised that, depending on the results, the launch campaign may cost anywhere between AU$50 million and AU$80 million (US$32.2 million to US$51.5 million). However, the campaign was very successful, bringing in a gross profit of AU$225 million (US$145 million) from only the 320,000 new clients.

Tripp emphasised that even after deducting taxes and other charges from gross profit, the earnings from these clients came to over three times the original outlay.

Additionally, he pointed out that it typically costs roughly AU$100 million (US$64.3 million) in marketing expenditures to reach a 25% brand recognition level in the market. Comparatively, Betr spent around AU$72 million on actual expenditures and an additional AU$20 million (US$12.9 million) on marketing, totaling slightly under AU$100 million in outlays for a return that was more than twice that amount.

Tripp added that because of the hedging technique Betr used, they would be required to pay out AU$20 million regardless of how the grand final turned out. As a result, the payout’s financial effect was minimal for the day.