Australian racing and wagering giant Tabcorp has been awarded the new 20-year Victorian wagering and betting license, beating out competition from corporate bookmakers.
The new license, commencing from August 2024, also provides for what Tabcorp describes as a “level playing field” by removing the current joint venture arrangement with the Victorian racing industry and associated funding obligations, with Tabcorp to pay wagering taxes and racing and sports product fees on the same basis as other wagering operators.
Had the new license conditions existed under its current arrangement, the company’s FY23 Group EBITDA would have been AU$140 million, Tabcorp explained.
Under the new arrangement, Tabcorp will pay a one-off AU$600 million licence fee to the Victorian Government on 28 June 2024 plus 19 annual payments of AU$30 million each commencing 16 August 2025.
“Today is momentous in the journey of our company post demerger,” said Tabcorp Managing Director and CEO, Adam Rytenskild.
“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.
“This announcement continues the strong momentum of our transformation. We are a faster, simpler and more nimble company. We’re delivering on what we promise and offering our customers a better experience with faster speed to market and an attractive product offer.
“We are pleased to have worked with the Victorian Government on a retail and tote licence that appropriately takes into account the structural changes created by the proliferation of online bookmakers licensed in the Northern Territory. This is a strong licence for the modern era and is the prototype moving forward – it ensures a safe wagering ecosystem for the community and incorporates stronger protections to ensure genuine retail exclusivity.
“Significantly, the terms of this agreement will place Tabcorp on a level playing field with our competitors for the first time in Victoria. The structure of payments represent value for shareholders, and will enable us to invest more in our products, offerings and customer experience.
“As the long-term industry partner, this New Licence ensures TAB remains part of the social fabric of local communities in Victoria.
“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.”
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