Australian betting giant Tabcorp is planning to introduce surge pricing, with the bookmaker’s cut to increase during peak weekend periods and decrease on weekdays if approved.
As reported by The Australian newspaper, the plan – known as “Project Alfred” – came to light on Friday during Competition Tribunal hearings related to Tabcorp’s proposed AU$11 billion merger with Tatts.
It was first proposed to Victorian racing officials in 2015 after Tabcorp research showed that weekend bettors – particularly those betting during Australia’s flagship Spring Racing Carnival – paid less attention to the prize pool or cut than at other times.
However, the fact that it was only revealed when counsel for the Australian Competition & Consumer Commission, Andrew McClelland QC, received documents outlining Project Alfred “cast doubt on a lot of evidence” by Tabcorp’s witnesses, he said. Those witnesses have included Tabcorp Managing Director and CEO David Attenborough, who ranked 31st in Inside Asian Gaming’s Asian Gaming Power 50 in 2016.
Project Alfred would bring in up to AU$3 million in annual revenue, it has been estimated.
Mr McClelland told the tribunal that the documents,” also disclose some plans to increase the take-out rate above the maximum statutory rates in some jurisdictions,” with a proposal that Tabcorp would lobby government to be granted permission to implement an increase in the cut they could take, depending on the bet type.
The company’s Executive General Manager of Commercial Development, Mr Doug Freeman, told the tribunal that Tabcorp’s strategy, “was we would increase the take-out rates on certain days, decrease them on other days.
“There was likely to be a net difference which we then intended to use that extra revenue to promote more, just like the corporates do,” he said.
“We presented it to Victorian Racing, we have explained it to our key stakeholder, and they are a total supporter of it.”
Tabcorp’s market rivals have reacted strongly to news of Project Alfred, with Neil Young QC, who is representing James Packer’s corporate bookmaker CrownBet, rejecting claims that the plan would improve liquidity and allow for better management of prize pools.
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