BetMakers (ASX:BET) Surges 11% on Stake Deal: A Speculative Buy for Patient Investors?

BetMakers Technology Group (ASX: BET) jumped as much as 11 per cent on Thursday before settling up around 6 per cent after landing a multi-year deal with Stake.com, one of the world’s largest online betting platforms. Stake will use BetMakers’ RaceOdds+ product to power its global horse racing offering, gaining access to full pricing and trading tools. For investors watching this turnaround story, the Stake deal is the latest in a string of wins that suggest BetMakers’ technology is gaining real traction with big operators.

What are the Best ASX Tech stocks to invest in right now?

Check our buy/sell tips

BetMakers Builds Global Racing Network Through Key Partnerships

What makes the Stake deal meaningful is the bigger picture. Over recent months, BetMakers has signed deals with several major names, and we believe this momentum represents a real inflection point.

The company extended its Penn Entertainment deal for another three years, starting January 2026, with management expecting it to add around A$1.2 million annually to EBITDA. BetMakers also teamed up with Kiron Interactive for virtual racing content and became an official reseller for Sports Information Services (SIS), covering over 60,000 events yearly.

On the platform side, eight new customers went live on BetMakers’ Apollo system during Q2 FY26, with another eight scheduled this year. The company is also advancing Monmouthbets, its US digital tote platform licensed in Oregon. In our view, major operators do not sign multi-year agreements with struggling technology providers. The fact that names like Stake, Penn, and SIS are betting on BetMakers suggests the product genuinely works.

BetMakers Shows Clear Signs of Progress

The numbers support the partnership momentum. In FY25, adjusted EBITDA swung to a positive A$4.6 million from a loss of A$7.2 million the year before. That is a meaningful shift for a company that burned cash for years. Net losses dropped by about 32 per cent to A$26.4 million, and gross margins improved from 60 per cent to 64 per cent.

The company also hit positive operating cash flow for the first time and finished the year with A$18.8 million in cash and no debt. Revenue did fall 11 per cent to A$85.1 million, but the second half showed 5.6 per cent growth. We think this suggests the restructured business is finding its feet.
These improvements matter because they show BetMakers is not just signing deals but actually turning them into better financial results.

The Investor’s Takeaway

At around A$200 million market cap, BetMakers trades at roughly 2.4 times revenue. For a B2B software business with improving margins and growing recurring revenue, we think that looks attractive compared to global wagering technology peers, which typically trade between three and six times sales.

The bull case is straightforward. If BetMakers converts its partnership roster into sustained revenue growth while maintaining margin improvements, profitability is within reach. US expansion through Monmouthbets could add meaningful revenue as more states approve fixed-odds racing.

The bear case is equally clear. BetMakers still loses money and operates in a competitive space. If deal momentum stalls, the stock could pull back quickly.

What to watch: If Q3 FY26 delivers another quarter of positive adjusted EBITDA and Apollo customer launches continue at the current pace, we believe the turnaround thesis strengthens considerably.

For risk-tolerant investors willing to wait for profitability, BetMakers looks like a solid watchlist candidate. Conservative investors should wait for another positive quarter before jumping in.