Australia ASX-listed Tabcorp Holdings, hoping to establish a presence within U.K. gambling, is preparing to bid for the 2023 National Lottery operating contract. The Daily Telegraph reports that Tabcorp has held discussions with investment bank Rothschild, one of four strategic advisors forming the U.K. Gambling Commission’s tender evaluation body.
Tabcorp joins a list of high-profile firms seeking to dislodge Camelot U.K. as the operating the National Lottery. Other confirmed suitors include Sir Richard Branson’s Peoples Lottery and billionaire publisher Richard Desmond’s Northern-&-Shell Group.
A turbulent 2019 saw Tabcorp criticized by investors for failing to deliver value on the firm’s A$11 billion merger with main market rival, the Tatts Group. Also, the company had to fend off rumors that its largest investors had demanded for Tabcorp split its lucrative keno and wagering assets into a separate business entity.
In response, Tabcorp has indicated 2020 will be the year in which its Tatts acquisition showcases its true capacity that a National Lottery win would act as the panacea for its investor anxieties.
To date, Tabcorp carries a blighted record within the U.K., having co-founded the Sun Bets joint-venture in 2017 alongside News UK. Tabcorp went on to terminate the Sun Bets property in 2018, absorbing £50 million (US$65.06 million) in losses and giving News UK £40 million in compensation for exiting its contract.
The gambling commission’s 2020 tender also carries an international appeal with Czech gambling conglomerate Sazka Group and French lottery operator FDJ, confirming in December that they also have approached Rothschild with regards to launching bids.
