Tom Waterhouse has sold his online betting business to Britain's largest bookmaker William Hill, increasing the dominance of Australia's sports betting market by foreign firms.
The controversial 31-year-old bookmaker will pocket at least $34 million and up to $104 million after selling his entire online betting business to William Hill.
The purchase highlights the increasing foreign ownership of Australia's betting agencies, including William Hill's recent $670 million takeover of Centrebet and Sportingbet while Ireland's largest bookmaker Paddy Power owns Sportsbet.com.au.
William Hill's chief executive Ralph Topping hinted at more expansion in Australia, saying the company's ambitions didn't end here and he wanted it to be number one.
The takeover does not necessarily mean Mr Waterhouse will disappear from the public eye as he will continue as managing director of his business.
He has attracted controversy for his ads and a paid deal with the National Rugby League that involved giving live odds on air, prompting then PM Julia Gillard to pressure broadcasters into stopping the practice amid concerns about childrens' exposure to gambling.
William Hill cited Mr Waterhouse's betting partner TV deals with the NRL and horse racing as key benefits.
Mr Waterhouse was non-committal about how high-profile his new role would be.
"Things change in business and marketing direction changes all the time," he told AAP.
"Whether and what marketing direction we take remains to be seen, obviously we listen to our customers in that respect and I'm here for the long term."
William Hill's chief executive Ralph Topping defended Mr Waterhouse, saying he had made mistakes but had nothing to apologise for.
"He pushes the envelope and entrepreneurs do that ... he's also man enough to put his hand up and say: it ain't working thanks, I'm listening to what's being said," he told AAP.
Mr Waterhouse apologised for his advertising blitz and promised to cut back after the government's intervention.
Mr Topping tried to head off worries about a foreign takeover by pointing out that Australian management teams were still running Sportingbet and tomwaterhouse.com.au.
Independent Senator Nick Xenophon, a strong anti-gambling campaigner, said overseas online betting interests now control more than 50 per cent of the online market.
Neither the Australian Competition Consumer Commission nor Foreign Investment Review Board are currently taking any action.
The sale figure is believed to be well below what Mr Waterhouse wanted, having already spent millions, and Mr Topping said he would have paid more and was delighted with the price.
The business is estimated to have five per cent of the market and will need to earn $10 million to $30 million by the end of 2015 for Mr Waterhouse to receive up to an extra $70 million.
