SBC News Voice of the Sports Betting Industry
Tabcorp has been granted the rights to trial in-play betting in pubs and clubs by the state of New South Wales (NSW).
The ASX-listed gambling group has secured regulatory approval from Liquor & Gaming NSW to pilot in-play betting via mobile app terminals within licensed pub and club venues.
The agreement was disclosed by Tabcorp CEO Gillon McLachlan during an address at the Macquarie Conference, to an audience of investors of the heritage Australian investment bank.
“I believe this is the future of wagering,” McLachlan declared, branding the project as potentially transformative for Tabcorp’s wagering business.
A successful launch “could take the friction out of retail betting” and help modernise Tabcorp’s physical network while remaining compliant with Australia’s restrictive gambling laws.
The pilot is set to begin in two Sydney venues, with plans to expand to over 20 in the coming weeks. If successful, the model could be adopted nationally, adding a new commercial dynamic to TAB’s consumer engagement.
However, observers anticipate tough negotiations ahead if Tabcorp seeks to broaden the trial further, given that live or in-play betting has long been a contentious issue in Australia.
Unlike Europe and the US, where in-play accounts for more than half of all sports betting turnover. Australia prohibits digital in-play wagering except through telephone or in-person transactions. Only 4% of Tabcorp’s total turnover currently derives from in-play channels, compared with 54% in the US.
In-Play banned since 2001
In-play betting via online apps or websites has been banned since the Interactive Gambling Act (IGA) came into effect in 2001. However, customers may still place bets on live sports via telephone or at retail betting outlets.
The IGA introduced the ban as a harm minimisation principle, aiming to reduce the intensity and risk associated with betting on live sporting events.
Interpretation of the IGA came under strain between 2015 and 2017, as international operators such as Ladbrokes, William Hill, and Bet365 launched “Click-to-Call” betting apps. These simulated live betting functions through app-based phone calls.
Click-to-Call services were banned from 2017 onwards following intervention by the Australian Federal Police and the Australian Communications and Media Authority (ACMA), who warned operators that licences would be revoked if they continued to offer the functionality.
Tabcorp’s new trial aims to navigate this regulatory complexity. While in-play betting will still not be offered remotely in the traditional sense, the new technology enables a digital interface linked to physical terminals in licensed premises. This, Tabcorp contends, keeps it compliant with existing regulations while offering a modernised product suite.
“We don’t need to own the AFL rights, we don’t need to own the NRL rights,” McLachlan told investors. “We can talk through your screen, through data.” His remarks signal an ambition to decouple Tabcorp’s value proposition from traditional media rights and refocus it on data-driven personalisation.
In-play Sensitivities
Yet this bold shift comes amid heightened scrutiny of gambling practices. Operators face mounting pressure from regulators and public health advocates over issues such as gambling-related harm, personalised marketing, and advertising saturation.
Rival bookmaker Sportsbet is currently facing a class action lawsuit in the Victorian Supreme Court regarding its “Fast Code” feature, which allegedly enabled illegal in-play betting.
The lawsuit, led by Maurice Blackburn, accuses Sportsbet of attempting to circumvent legal safeguards. “We believe that Sportsbet’s use of the Fast Code service is not just an attempt to circumvent important laws — it is illegal,” said principal Elizabeth O’Shea.
While Tabcorp’s model has received regulatory approval and operates through licensed retail premises, its use of personalisation and team-specific offers may yet attract further scrutiny from harm reduction advocates.
The federal government has postponed long-discussed reforms to gambling advertising — including a proposed ban on ads during live sport — citing pressure from media giants, sports leagues, and betting firms. However, state-level action continues.
NSW has announced a total ban on gambling ads on public transport, stripping approximately A$30m in annual ad revenue from buses, trains, and stations.
Tabcorp under Transformation
Tabcorp’s announcement coincided with news of further restructuring. McLachlan confirmed 50 additional roles will be cut this week, bringing total redundancies under his leadership to around 300. “I never sugarcoat,” he said. “I am clear with the staff that this will be the end of changes for a minimum of 18 months.”
Appointed CEO on 30 January 2025, McLachlan, the former Chief Executive of the AFL (Australian Football League), called for an immediate review of all business units. Tabcorp reported an FY2023/24 operating loss of AU$1.36bn (circa €830m), reporting declines across all commercial units.
Having installed a new C-level leadership team, McLachlan believes that Tabcorp’s Wagering and Media business have failed to deliver a competitive digital offering, as the heritage group has lost significant market share to rivals Sportsbet (Flutter Entertainment) and Ladbrokes and Neds (Entain Plc).
Whether the regulatory tide will permit the McLachlan project to scale remains uncertain. Tabcorp appears determined to prove that Australia’s venue-based wagering model can be transformed as a key objective of the modernisation of the ASX giant and its return to value for maligned shareholders.
