News Corp Australia is part of a new online wagering business consortium that also includes Las Vegas digital sports-gambling investment firm Tekkorp Capital chairman Matt Davey and TGW, a trust whose investors include well-known betting-industry executive Matthew Tripp.
The deal was first reported in The Wall Street Journal on Wednesday, after which ASX-listed technology services provider BetMakers entered a trading halt pending the announcement of a material deal.
BetMakers will be the technology services provider on the new platform and has signed a deal with NTD Pty Limited, the new venture.
BetMakers' shares shot up more than 20 per cent to 78c shortly after the announcement and were 15.5 per cent higher at 74c around 2.20pm AEST.
The new wagering venture will apply for a sports bookmaker licence under which it will operate a new online wagering product for Australian and New Zealand punters to bet on racing and sports.
The product launch is scheduled for the second half of 2022.
BetMakers says the 10-year contract includes a revenue-share arrangement and has the potential to generate revenues greater than $300m over the decade.
Mr Davey will step down from the BetMakers board but will remain a long-term shareholder of the company.
"The new wagering venture is a significant investment by Tekkorp Capital and one that I am very excited about," Mr Davey says.
News Corp is the publisher of The Wall Street Journal and The Australian.
