BlueBet Completes TopSport Acquisition in Key Australian Market Consolidation

BlueBet Holdings has finalized its acquisition of Queensland-based bookmaker TopSport, reshaping Australia’s competitive sports betting market. The deal, valued at AUD 15 million, marks a significant milestone in BlueBet’s aggressive expansion strategy within the AUD 6.81 billion Australian sports betting market.

Key Takeaways:

• BlueBet completed the TopSport acquisition on April 1, 2025, for AUD 15 million
• The deal included AUD 10 million upfront and up to AUD 5 million in performance-based earn-outs
• TopSport’s CEO Tristan Merlehan joins BlueBet as Chief Trading Officer
• The acquisition is projected to deliver over 30% earnings per share accretion in FY2026-2027
• BlueBet continues pursuing PointsBet in further consolidation efforts

The completion was officially announced through the Australian Securities Exchange (ASX) on April 1, with BlueBet paying a cash component of AUD 1.52 million and issuing approximately 8.8 million new shares to finalize the transaction.

“Today marks a major step forward in our mission to create a powerhouse in the Australian sports betting market,” said BlueBet CEO James Salteri during a media briefing. “By bringing TopSport into our family, we’re not just acquiring assets – we’re gaining exceptional talent, proprietary technology, and a loyal customer base that complements our existing operations.”

Strategic Rationale and Market Position

The acquisition forms a central component of BlueBet’s stated goal of capturing 10-15% of Australia’s sports betting market, which analysts project will grow at a compound annual growth rate (CAGR) of 22.10% to reach AUD 50.15 billion by 2034.

TopSport brings a substantial customer database of over 63,000 accounts and a reputation for serving premium betting customers. In the first half of the 2025 financial year, TopSport reported a turnover of AUD 198.9 million and a net win of AUD 11.8 million, showcasing its strong performance in the competitive landscape.

Market analyst Sarah Chen from Australian Gaming Research pointed to the complementary nature of the businesses: “TopSport has built a reputation for excellent customer service and strong risk management, while BlueBet brings technological innovation and marketing expertise. The combined entity addresses different segments of the market while creating operational efficiencies.”

The transaction is expected to deliver significant synergies, with BlueBet projecting cost savings of approximately AUD 9 million through the rapid migration of TopSport’s operations to BlueBet’s proprietary platform. These efficiencies are anticipated to contribute to earnings per share accretion exceeding 30% in the 2026-2027 financial year.

Deal Structure and Financing

The AUD 15 million transaction was structured with careful attention to both immediate costs and long-term performance incentives:

• Upfront payment of AUD 10 million (70% cash, 30% BlueBet shares at AUD 0.34 per share)
• Potential earn-out payments of up to AUD 5 million based on performance metrics over the next two years
• Final completion payment of AUD 1.52 million in cash and approximately 8.8 million shares

To finance the acquisition, BlueBet successfully completed an institutional placement in February 2025, raising AUD 15 million at AUD 0.34 per share. The placement was oversubscribed, reflecting strong investor confidence in the company’s consolidation strategy.

Leadership Integration and Cultural Fit

A significant aspect of the deal involves the integration of key TopSport talent into BlueBet’s executive team. Most notably, TopSport’s CEO and founder Tristan Merlehan has joined BlueBet as Chief Trading Officer, bringing his extensive experience in risk management and trading operations.

“Tristan’s expertise in trading and risk management is renowned in the industry,” noted BlueBet Chairman Michael Sullivan. “Having him join our leadership team dramatically strengthens our capabilities in a critical area of the business.”

Merlehan expressed enthusiasm about the cultural alignment between the organizations: “Both companies share a passion for creating premium betting experiences and have built reputations for putting customers first. The cultural fit was as important as the business case when we considered this partnership.”

Market Context and Regulatory Environment

The acquisition occurs against a backdrop of significant regulatory changes in Australia’s gambling industry. In 2023, the government banned credit card betting to address concerns about gambling-related harm, forcing operators to adapt their payment systems and customer acquisition strategies.

These regulatory shifts have accelerated consolidation in the market, with larger operators seeking scale and efficiency to offset increasing compliance costs and marketing restrictions.

BlueBet now competes more directly with market leader Sportsbet, which reported turnover of approximately AUD 2.7 billion last year, and other significant players including PointsBet, which handled around AUD 550 million in bets during the same period.

“Scale is becoming essential in this market,” explained gambling industry consultant Michael Davidson. “Regulatory compliance costs are rising, advertising restrictions are tightening, and technology investments are substantial. Mid-sized operators like BlueBet need to consolidate to remain competitive against the resources of global players.”

Future Growth and Acquisition Strategy

The completion of the TopSport deal does not appear to be the end of BlueBet’s expansion ambitions. The company has publicly confirmed ongoing discussions regarding a potential acquisition of PointsBet’s Australian operations, despite competing interest from Japanese gaming company Mixi.

BlueBet CEO James Salteri described the ongoing discussions with PointsBet as “overwhelmingly positive” during a recent investor call, signaling the company’s determination to further consolidate its market position.

“We’ve developed a repeatable M&A model that allows us to identify compatible businesses, integrate them efficiently, and create value for shareholders,” Salteri explained. “Our platform architecture was designed specifically to absorb additional operations with minimal disruption.”

Industry observers note that further consolidation appears inevitable as regulatory pressures increase and competition intensifies. With the success of the TopSport integration likely to influence market confidence, BlueBet’s next moves will be watched closely by competitors and investors alike.

The Australian online sports betting market continues to evolve rapidly, with technology innovation, regulatory compliance, and scale economies driving strategic decisions across the sector. BlueBet’s successful completion of the TopSport acquisition positions the company as a key player in this dynamic landscape, with potential for further growth through both organic expansion and additional strategic acquisitions.

Sources:

• ASX Announcement
• Sharecafe
• SmallCaps
• FinNewsNetwork
• Expert Market Research
• Custom Market Insights
• Gaming Intelligence