Tabcorp secures landmark wagering licence in Victoria
Tabcorp Holdings Limited (Tabcorp) has achieved an accomplishment by obtaining the retail wagering and betting license from the Victorian Government.
This license, which will be effective, from August 2024 for a period of 20 years signifies a important phase for Tabcorp and Victorian thoroughbred racing.
It brings about a framework that strengthens its position in Victoria.
The new license includes changes such as the termination of the venture with the Victorian Racing Industry (VRI) and the discontinuation of industry funding obligations.
These changes create a level playing field aligning Tabcorp with operators in terms of wagering taxes and fees for racing and sports products.
Tabcorp expects growth in its group earnings both in terms of scale and quality thanks to this license.
If these terms had been applied in FY23, they would have resulted in a $140 million increase in Group EBITDA.
This translates into enhanced earnings per share (EPS) for Tabcorp shareholder and corporate investors.
As part of the agreement Tabcorp will make a payment of $600 million, to the government on June 28 2024.
This will be followed by 19 payments of $30 million starting from August 16, 2025.
To cover these payments the company plans to utilise its existing debt facilities.
Tabcorp’s CEO, Adam Rytenskild, expressed his satisfaction, with this accomplishment stating that it is an outcome for shareholders, the Victorian Government and industry stakeholders.
Despite competition from online bookmaker Sportsbet during the bidding process, Tabcorp emerged as the winner.
Sportsbet’s application may have been affected by their reputation as one of the most prominent gambling advertisers in the country, especially when there is increased scrutiny and a government inquiry into gambling advertising levels.
Rytenskild highlighted that the license aligns with the changing landscape of betting and allows Tabcorp to strengthen its wagering business in Victoria.
He commended the collaboration between Tabcorp and the Victorian Government in designing a retail and tote license that addresses industry developments including concerns regarding betting sites licensed in Northern Territory.
This new license puts Tabcorp on a footing with its competitors in Victoria enabling investments in products, offerings and overall customer experience.
A spokesperson, from Tabcorp expressed enthusiasm about collaborating with the government for the two decades through the updated license.
Their aim is to provide Victorians with an state of the art entertainment experience while maintaining a viable retail wagering system.
Tabcorp said they “will make sure to prioritise the long term sustainability of Victoria’s thoroughbred racing industry while achieving all these goals”.