The Australian betting market has entered a ‘turf war’ following a ‘digital wagering services’ agreement between James Packer’s Crownbet and Clubs NSW.
Following an industry tender, Crownbet won the contract to provide interactive wagering services for circa 1,200 syndicated Clubs NSW venues, in a deal that Australian business commentators have valued at AUS $300 million.
Clubs NSW governance claims that the switch to Crownbet’s digitally focused service was needed to better service its customers wagering habits which were no longer attune with Tabcorp ‘TAB’ wagering provisions.
The ten-year deals sees CrownBet integrate its ‘Customer Rewards Service’ into club loyalty programs. Members will be able to earn and redeem points in venue, including at club restaurants and cafes or over the bar and through ‘Rewards’ ATM machines.
However, Tabcorp governance has moved to quickly shut down the digital agreement, stating that it breaches previous terms of its arrangement with Clubs NSW as its TAB subsidiary is the sole provider of wagering services to Clubs NSW venues.
Stating its intent to shut down the deal, Tabcorp CEO David Attenborough has instructed the operator’s legal teams to write to NSW venues alerting them that they will be breaking the law should they install Crownbet services.
Furthermore, Tabcorp has asked the New South Wales board of Liquor and Gaming to review the agreement between Crownbet and Clubs NSW, requesting for any integration of services to halted.
In 2013, Tabcorp governance entered its new deal with the NSW government paying $75 million for a twenty-year exclusivity to maintain wagering facilities for state clubs and pubs.