Australian gaming giant Tabcorp Holdings Limited has revealed that it is in discussions with joint venture partner News UK to exit its agreement to operate online sportsbook Sun Bets.
Tabcorp confirmed recent rumors that it is looking for a way out in a Friday announcement, stating, “These discussions remain ongoing and an agreement has not been reached at this stage. Tabcorp has commenced collective consultation with Sun Bets employees regarding the proposal, which is in line with UK employment law obligations.”
The company had previously described Sun Bets’ trading as “challenged” following the commencement of a strategic review last October.
Sun Bets, which launched in August 2016, has lost more than AU$135 million in less than two years, including a loss of AU$22.5 million in the six months to 31 December 2017.
The current deal with News UK is supposed to run for 10 years through to 2026.
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