SBC News Tabcorp begins new leadership era under Gillon McLachlan
Source: AFR News

Tabcorp begins new leadership era under Gillon McLachlan

Tabcorp Holdings has commenced a new leadership era under Gillon McLachlan, who assumes the role of Managing Director and Chief Executive Officer (MD & CEO) of the ASX-listed gambling group.

In June 2024, McLachlan, the former CEO of the Australian Football League (AFL), accepted Tabcorp’s offer to lead the embattled company.

McLachlan succeeds former incumbent Adam Rytenskild, who resigned in March following inappropriate comments made about a female executive at Tabcorp.

From the sidelines, McLachlan observed a disastrous financial year in 2023/2024 for the ASX firm, as Tabcorp reported a statutory net loss of AU$1.4 billion (€850 million), attributed to impairment charges related to wagering units, commercial contracts, and defunct technical projects.

Due to this poor performance, Tabcorp’s board decided to terminate its TAB25 strategy and recovery targets, which aimed to reclaim 30% of Australia’s online gambling market share with a projected 10% return on investment.

Instead, Tabcorp will prioritise restructuring its TAB unit and wagering contract, integrating a new leadership team led by McLachlan, and revamping its online platform and offerings.

A prominent figure in Australian sports, McLachlan, during his decade-long tenure at the AFL, doubled the league’s revenues to over AU$1 billion in 2023, securing the largest broadcast deal in Australian sports history.

Notably, McLachlan oversaw the expansion of the AFL competition to 18 teams and the launch of the AFLW competition.

Tabcorp has also begun reorganising its C-level executive team, announcing the appointment of Jarrod Villani as its new Chief Commercial and Media Officer, and recruiting former Hong Kong Jockey Club and Stars Group executive Michael Fitzsimons to the newly created position of Chief Wagering Officer, who will oversee the redevelopment of the ASX-listed gambling group’s products and services for betting audiences.

The appointment of Gillon McLachlan was authorised by newly appointed Chairman Brett Chenoweth, who replaced Bruce Akhurst in September.

Following today’s announcement, the company stated: “Bruce Akhurst will retire from the Tabcorp Board and cease as Executive Director, effective today. This announcement was authorised for release by the Tabcorp Chairman, Brett Chenoweth.”

As Tabcorp aims to turn around its performance, it will take on the exclusive wagering licence for the state of Victoria, which will be serviced by the TAB. Investors will closely scrutinise Tabcorp’s online progress to assess whether the ASX firm can maintain its market share amid growing competition from foreign operators, such as Entain PLC and Flutter Entertainment, who view Australia’s online gambling as a ‘soft market’.

Check Also

SBC News Tabcorp hires Michael Fitzsimons to turnaround of wagering services

Tabcorp hires Michael Fitzsimons to turnaround of wagering services

Tabcorp Holdings has confirmed the appointment of Michael Fitzsimons as Chief Wagering Officer, who will …

SBC News Tabcorp inks ‘invaluable’ esports partnership with PandaScore

Tabcorp inks ‘invaluable’ esports partnership with PandaScore

Tabcorp has partnered with PandaScore to expand its esports offering in Australia. The betting brand …

ACMA

Tabcorp handed $262,000 penalty for illegal in-play bets

Tabcorp has received a penalty of $262,920 after it took online in-play sports bets, which …