Tabcorp, the Australian racing and wagering giant, has emerged victorious in the battle for the new 20-year Victorian wagering and betting license. This comes after the company successfully outperformed corporate bookmakers in the highly competitive process.
The new license, set to commence in August 2024, brings about a “level playing field” for Tabcorp by eliminating the existing joint venture arrangement with the Victorian racing industry and associated funding obligations.
Under the new license conditions, Tabcorp will pay wagering taxes and racing and sports product fees on the same basis as other wagering operators, effectively leveling the playing field. This move signifies a significant structural reform in the modern wagering environment and addresses the challenges faced by Tabcorp in the current landscape. The company’s FY23 Group EBITDA is projected to reach AU$140 million under the new license conditions.
Tabcorp’s victory in securing the new license requires the company to pay a one-off AU$600 million license fee to the Victorian Government on June 28, 2024. Additionally, it entails 19 annual payments of AU$30 million each, starting from August 16, 2025. These financial commitments reflect the value Tabcorp places on the license and its dedication to investing in its products, offerings, and customer experience.
Tabcorp’s Managing Director and CEO, Adam Rytenskild, expressed his satisfaction with the terms secured under the new license. He emphasized the importance of working closely with the Victorian government to create a safe and enjoyable wagering experience for customers while ensuring the long-term sustainability of the state’s racing industry.
Rytenskild highlighted the ongoing transformation of Tabcorp, positioning the company as a faster, simpler and more nimble organization. This transformation enables Tabcorp to deliver on its promises and offer customers an enhanced experience with faster speed to market and an attractive product range.
