Tabcorp wins new sports betting licence in Victoria
Tabcorp has been awarded a new 20-year Wagering and Betting Licence.
Australia.- Tabcorp has announced that it has been awarded a new Wagering and Betting Licence by the Victorian state government. The new licence is valid for 20 years, starting from August of 2024.
The company competed for the licence against rival Sportsbet. Under its bid, it will make an upfront payment of AU$600m (US$401.9m) to the Victorian government in June, and AU$30m (US$20m) in annual fixed payments from 2025 to 2043. That will take the total payment to AU$ 1.1bn. Tabcorp has held the licence in the state since 1994.
According to the announcement, Tabcorp’s licence terms are “creating a level playing field in Victoria for taxes and fees and enhancing Tabcorp’s ongoing competitiveness.” The licence details that the company does not need a racing industry joint venture, and maintains exclusivity “before and during the term of the new licence.”
Tabcorp Managing director and CEO, Adam Rytenskild said the new licence was stronger than the existing arrangement and those in other jurisdictions.
“It really is the best licence in the country now. It’s got much stricter retail exclusivity and a commitment by the government to ensure that exclusivity is maintained throughout the term of the licence. It puts wind in our sails going into next year,” Rytenskild said and added: “We think this sets the standard for retail licences going forward.”
“This is a positive outcome for our shareholders, the Victorian Government and industry stakeholders. I am particularly pleased with the terms we have secured under this new licence which directly addresses the structural reform required in the modern wagering environment. It’s a licence that will allow us to ignite our total Victorian wagering business,” Rytenskild said.
The new licence means the group will end its joint venture arrangement with the Victorian Racing Industry and its current industry funding obligations. Tabcorp will pay wagering taxes and racing and sports product fees on the same basis as other waging operators.
“As the long-term industry partner, this New Licence ensures TAB remains part of the social fabric of local communities in Victoria,” said Rytenskild. “We are excited to partner with the Victorian Government over the next two decades under a modern wagering licence to continue to create a safe, enjoyable and innovative entertainment offering and retail wagering ecosystem for Victorians, while ensuring long term sustainability for the state’s racing industry.
“As a proudly Australian company, we are absolutely committed to continue working closely with the Victorian Government and Regulator to provide a safe experience for customers and continue to evolve our capability to prevent the impact of gambling harm on Victorians.”
