Tabcorp Seals 20-Year Extension to Victoria Wagering License

The announcement of the deal sees incumbent operator Tabcorp beat several competitors including Sportsbet to secure rights to the highly lucrative retail betting market in Victoria. The new deal will allow the company to remain as the sole betting operator in pubs and clubs for the next two decades.

“It really is the best license in the country now. It’s got much stricter retail exclusivity and a commitment by government to ensure that exclusivity is maintained throughout the term of the license. It puts wind in our sails going into next year. We think this sets the standard for retail licenses going forward.”

Rytenskild said in his presentation that that the terms of the new license in Victoria will have a significant impact on the company’s profitability. He noted that had the new license been in place earlier, the company’s earnings in the last financial year would have been AU$140 million higher.

Sportsbet and Entain Lose Out

Victoria is home to many of Australia’s highest profile racing events such as the Melbourne Cup and one of the most lucrative retail betting markets in the country. And with Tabcorp’s current deal coming to an end, major gambling operators such as Sportsbet, owned by Flutter, and Entain-owned Ladbrokes had made proposals to take on part or all of the state’s retail wagering license.

Earlier this year, the state regulator intimated that it would consider opening the local market to multiple gambling operators. This led to several bids that included applications to rights for both online and retail sports betting. At the time, Tabcorp stated that it would be happy to share the wagering license provided that it would retain exclusive rights to the retail market.

Tabcorp’s insistence that it would not share its database with competing operators if the license was split saw Entain withdraw its bid at the eleventh hour.

Additional Support Payments

In 2011, Tabcorp entered into its current agreement with Victoria. This involved an initial payment of AU$410 million. While the company is now exempt from paying a fee under its new joint venture with the racing sector, it has committed to providing $15 million in transitional support over the course of the next three years. It will also contribute $2.5 million into existing animal welfare programs within the racing industry.

Ciaran McEneaney

Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.