MIXI Gains Ontario Regulatory Approval in Pointsbet Acquisition Push
Japan-based internet services company MIXI has cleared a major regulatory hurdle in its bid to acquire PointsBet, having received approval from key gaming authorities in Ontario. Both the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO) have confirmed they do not oppose the proposed acquisition, allowing the transaction to advance beyond one of its most critical conditions.
The regulatory clearance fulfills a requirement outlined in the Bid Implementation Deed (BID) signed on June 16. It follows a previous approval obtained by MIXI from the Northern Territory Racing and Wagering Commission in March. With no further gaming-related authorizations outstanding, MIXI's A$402 million off-market proposal now hinges on remaining conditions, including shareholder acceptance.
Consequently, a successful resolution will demand robust support from more than 50.1% of the shareholders in PointsBet. A resolution in the Ontario sports betting and Ontario online casino spaces this week could ease the concerns of indecisive investors and mobilize support behind the offer, which has encountered roadblocks and procedural snags in recent weeks.
Despite all the pitfalls and the emergence of yet another potential bidder, MIXI has remained interested in sealing the deal. It describes itself as a long-term strategist that can bolster PointsBet's business, especially in regulated marketplaces such as Ontario's online gaming sector.
PointsBet vote controversy
Tensions in the takeover battle for PointsBet escalated after Betr demanded a recount of the shareholder vote on MIXI's acquisition offer, citing a significant error that excluded its proxy vote. The initial tally, taken on 25 June, was invalidated after it was discovered that Computershare, the vote registry provider, had failed to include Betr's 19.9% voting stake.
The omitted proxy had a dramatic impact on the result. Once Betr's votes were accounted for, the revised count revealed 81.9 million votes opposed the deal, compared to 350.2 million in favor. Betr's substantial holding was enough to shift the overall outcome, which had previously been announced as a decisive victory for MIXI.
Although PointsBet had reported a 95.69% approval rate from attending shareholders, the exclusion of Betr's vote meant that total support fell short of expectations. While PointsBet acknowledged the mistake, the company did not explicitly state that the recount demand had triggered the review. Computershare later issued an apology for the oversight.
Betr sharply criticized PointsBet's leadership, accusing the company of failing to verify the vote count before making public announcements. The episode has exposed a significant governance flaw and added further complexity to a takeover process already marred by procedural errors and competing interests. The ongoing conundrum raises doubts about how the deal will ultimately unfold.
