SBC News Voice of the Sports Betting Industry
Australian media reports suggest Tabcorp may find itself at a significant difference of opinion with hotels, pubs and leisure venues, relating to one of its key retail reforms.
The heritage operator that is increasingly facing competition from other major established plates and challenger brands, is planning to change its commercial relationship with many pubs according to the Australian Financial Review.
PubTAB, Tabcorp’s betting terminal product installed in thousands of Australian pubs, is at the centre of the development. Citing unnamed sources, the Financial Review reports that Tabcorp is planning on replacing the commission it pays to pubs using PubTAB terminals with a refurbishment and promotions scheme.
Other proposed changes include an end to commissions paid for new customers sign ups, an end to the fee paid if pub customers deposit money into a Tabcorp account via the pub, and the introduction of a minimum threshold on pubs’ betting turnover from the terminals.
Instead of paying the usual commissions, Tabcorp is proposing that it pay to refurbish hotel and public facilities and spend millions on a promotions programme, such as special offers. The company asserts that this would help bring new customers to many struggling venues, but some hospitality industry stakeholders are not quite as convinced.
The Australian Hotel Association (AHA) in particular has told the Financial Review that it is concerned that some smaller pubs would feel the financial pressure of Tabcorp cutting off its commission payments. The AHA has apparently told its member hotels and pubs about Tabcorp’s proposals, but the operator has not yet gone public about its potential plans.
Is Tabcorp going to have a problem with pubs?
The Financial Review adds that the AHA has noted that the plans for promotions could prove beneficial for some venues, but that overall the association remains concerned about the potential financial impact of cutting commissions and other payments.
This could put Tabcorp at loggerheads with the AHA and many of its member venues, and not for the first time. The duo found themselves on opposing sides of an argument around advertising back in 2023, specifically the AHA’s New South Wales branch, AHA NSW.
Tabcorp had taken offence to a partnership signed between Entain and AHA NSW which saw adverts for Entain’s Ladbrokes Australia and Neds brands placed in the association’s member venues. Tabcorp argued that this was infringing on its exclusive deal to operate in venue wagering facilities.
Two years later, hospitality wagering remains a key market for Tabcorp. Just last week the firm secured approval from Liquor and Gaming NSW to trial in-play betting on its terminals in pubs and clubs across the state.
The company may find itself encountering a new challenge in the coming months with balancing its proposals to change its financial relationship with pubs and clubs against its plans to further add to the existing offering and maintain its monopoly over this vertical.
In 2025, Tabcorp is executing the corporate strategy of newly appointed CEO Gillon McLachlan, who has described the business as rebuilding “from ground zero” following a dismal AU$1.4bn loss in 2024.
McLachlan’s transformation plan prioritises returning the TAB retail division to stable financial performance, while relaunching a new digital sportsbook platform aimed at halting further market share erosion to rival operators.
