Tabcorp Holdings will pay New South Wales A$75 million to extend its exclusive license to operate retail betting in the Australian state.
The extension, a key to the betting giant’s financial future, was announced just two days before it was set to expire, according to a report in The Australian. Losing the monopoly had been a possibility as the NSW government, anxious for new sources of revenue, was considering opening the market to competition.
As it stands, Tabcorp will remain through June 2033 the state’s sole provider of totalisator and fixed-odds betting across more than 2,100 branded outlets, pubs and clubs. In exchange, the company has agreed to pay New South Wales $50 million up front and the balance of $25 million over 10 years, beginning in 2024.
The deal is subject to legislative amendments, but Tabcorp Managing Director David Attenborough said it was a great outcome for the company and “the right outcome” for the state’s racing industry, which benefited last year to the tune of $238.6 million in fees spread across the thoroughbred, harness and greyhound sectors.
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