Tabcorp revenue bitten by ‘softer trading’ in 1Q24

Tabcorp split signals new era for Australian betting 

Australian gambling stands on the verge of a market transformation, as shareholders of ASX gambling group Tabcorp Holdings have unanimously approved splitting the business. 

This morning, Tabcorp’s board disclosed that 99% of shareholders had approved for the demerger of ‘The Lottery Corporation Limited’ – the unit that operates the Tatts Lotto and Keno business across Australia’s six states.

The demerger will see Tabcorp governance proceed to list two new separate firms on the ASX Exchange – ‘New Tabcorp’(media/wagering) and ‘The Lottery Corporation’ – by the end of May trading, dependent on final regulatory clearances.

 “The Lottery Corporation shares are expected to begin trading on ASX on a deferred settlement basis on Tuesday, 24 May 2022,” Tabcorp communicated to investors.

The planned listing of the new ventures will see Tabcorp complete its strategic overhaul led by chairman Steven Gregg who took charge of the corporate governance ASX group in 2020.

An overhaul was required as investors had stated their disappointment that Tabcorp had failed to deliver on any growth target of its AUS $11 million merger with main market rival Tatts Group.

“This is an important milestone in repositioning the Group’s portfolio and setting up Tabcorp and The Lottery Corporation for future success,” Gregg stated. 

“We are pleased to have received shareholder approval for the demerger of The Lottery Corporation from Tabcorp.”

Following the demerger, Gregg has agreed to serve as Chairman of The Lottery Corporation a venture that Sue van der Merweto will lead as Chief Executive.

New Tabcorp will be chaired by Tabcorp long-term corporate advisor Bruce Akhurst who will support Adam Rytenskild as Chief Executive of the business.

Leading New Tabcorp, Rytenskild and Akhurst have outlined plans to further streamline TAB wagering capacity that require a digital and multichannel upgrade to match online competitors. 

Further market developments saw the Murdoch family’s News Corp Australia declare that it would back the launch of a new online gambling venture led by figurehead Matt Tripp, the founder of Sportsbet AUS and igaming VC fund  Tekkorp Capital.

Backed by Australia’s biggest media group and powered by BetMakers technology solutions, Tripp has been charged with establishing Australia’s next mass-market sportsbook offering.

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