SBC News Voice of the Sports Betting Industry
Tabcorp Holdings has won the exclusive tender to operate the Wagering and Betting Licence of the State of Victoria.
2024 will see the Victorian government modernise the state’s wagering regime to improve consumer protections and tax collection from betting duties.
Tabcorp’s flagship TAB brand will serve as the exclusive operator for retail wagering and betting in Victorian pubs for a period of 20 years beginning in August 2024 until 2043.
Deal terms will see Tabcorp pay the government of Victoria an upfront payment of AU$600m (€365m), with fixed premiums of AU$30m (€18m) beginning in 2025. Dealmakers cited that the exclusive contract carries an estimated value of AU$865m – as yearly premiums are not linked to inflation.
Updating investors, Tabcorp underscored the licence’s significant positive impact on group financials as the ASX wagering group projects an uplift of $140M (€85m) on a pro-forma basis if the new licence terms had been applied in FY23.
The Victorian government’s upfront payment is scheduled for June 2024 and will be funded from Tabcorp’s existing debt facilities.
The new licence eliminates the previous joint venture arrangements between TAB and the Victorian Racing Industry (VRI), leading to lower fees and taxes for Tabcorp.
Legislative changes in 2024 will see Victoria increase the point of consumption tax on all betting activities (retail and online) from 10% to 15%, as Victoria aligns its wagering tax rate with other Commonwealth states.
Dealmakers cited: “Tabcorp’s successful bid for the exclusive Victorian Wagering and Betting Licence marks a transformative moment, promising financial gains and strategic advantages in the competitive wagering landscape.”
Taking on Victoria’s exclusive wagering rights, Tabcorp will revamp the state’s land-based betting venues with its new proprietary wagering platform and Australian racing media solution.
Group CEO, Adam Rytenskild, underscored the significance of the Victorian licence to the firm’s new TAB25 corporate strategy, in which Tabcorp’s corporate governance has pledged to return Tabcorp to the position of Australia’s most valued wagering group by 2025.
