U.K.-based Entain has signed a deal with Australian Hotels Association’s New South Wales (NSW) division to promote Ladbrokes and Neds brand “lounges.”
This has prompted a lawsuit by its rival Tabcorp, which has a monopoly on wagering in pubs in Australia.
Despite the pending court case, Entain is going ahead with its first Ladbrokes lounge in the Star Hotel in Seven Hills in Sydney. The hotel is one of 16 venues owned by Momento Hospitality Group in the greater Sydney area. The lounges will feature renovated bars.
Momento Group Chief John Whelan told the Sydney Morning Herald, that the hotels seek “competition and choice,” and added, “This is a significant first step in the rollout of our new arrangement with Entain.”
The hotel chain’s pubs and clubs are exclusively allowed to offer Tabcorp retail wagering, a relationship that was extended to 2033 in 2013.
The rivalry between Entain and Tabcorp is blazing across thousands of pubs and clubs in Australia. Tabcorp currently charges $12,000 annually to almost 5,000 pubs to stream the Sky Racing channel. However, critics note that many races can be watched free on streaming services.
