Who’s to blame for News Corp’s $75m gambling problem?
News Corp has descended into finger-pointing and blame-shifting as senior executives reckon with how the media company burned through tens of millions of dollars on online bookmaker Betr.
The Murdoch-led company invested alongside seasoned bookmaker Matt Tripp and betting tech company Tekkorp to found Betr in April last year, part of a strategic push across the business into online gambling.
According to more than a dozen sources within News Corp and the betting venture, problems emerged before the start-up even launched. They described how a key early investor dropping out prompted a series of cascading problems with how the venture would be funded.
Lachlan Murdoch, who flew into Sydney at the weekend, has distanced himself from the investment.
Betr’s headline-grabbing early 100-to-1 promotion saw hundreds of thousands of users sign up, but also led to massive early losses and snowballing liabilities that caused alarm within the media company. Within four months, News Corp Australia had cut ties with the outfit, assuring global investors there would be no more money put into the project.
Now, senior executives are privately looking for someone to blame. Lachlan Murdoch, who had been part of efforts for Fox Corporation to seek gambling opportunities in the US, flew into Sydney on Saturday, but has distanced himself from the investment in Australia. Several insiders wonder if there will be repercussions for those involved.
“Success has many fathers,” quipped one senior News Corp executive. “Failure is an orphan.”
The problems with News Corp Australia’s foray into gambling started well before Betr’s launch on October 12.
Mr Murdoch knew a lot about gambling. Sports betting was steadily being legalised in the US, and he
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