Western Australia could sell TAB

The government of Western Australia is in discussions to sell the state-owned betting agency TAB.

Australia.- The Australian Financial Review revealed that the government of Western Australia Premier Mark McGowan will appoint an adviser to be in charge of the sale of state-owned betting agency TAB. The state’s Treasurer has reportedly received offers from several banks.

The agency operated by Racing and Wagering Western Australia (RWWA) was supposed to be sold three years ago, but the racing industry opposed the move and blocked the government’s efforts. As CalvinAyre reported, the former Racing and Gaming Minister Colin Holt tried two years later to test the waters, but failed again. The successor, Paul Papalia, is now in talks with the racing industry in order to develop the attempts again.

Analysts believe that if Australian giants Tabcorp and Tatts achieve the desired merger they would likely bid for TAB, the last state-owned agency in Australia. Citi forecasts the sale price of TAB at US$500 million, but it was initially expected to reach the US$1 billion mark. Analysts believe that the value will be marked by the license term and tax rate.

Earlier this year, McGowan said that the money that flows through TAB actually flows through the state treasury and if that money is removed from the state treasury then a hole would be created in the budget and they could risk losing the credit rating.