Monopoly concerns
The proposed merger of Australian bookmakers Tabcorp and the Tatts Group, which was to have been finalized this month, has been pushed back to September 10 at the earliest.
The Australian Competition Tribunal will decide if the merger can move ahead. The merged companies would become what the Sydney Morning Herald called “an $11 billion gaming behemoth.”
Other gaming companies like CrownBet, Racing.com and Racing Victoria have contested the plan, and so has the Australian Consumer and Competition Commission, which has no authority to rule in the case but says the benefits to the public do not outweigh the threat to the competition. Among the concerns is that Tabcorp’s racing broadcast arm, Sky Racing, could have too much power in its dealings with pubs and clubs.
In their defense, Tabcorp and Tatts say the deal, which they hope to close this year, would make them strong enough to compete with international bookmakers.
Tabcorp withdrew from the ACCC’s approval process in March and took the proposed merger directly to the competition tribunal after the watchdog voiced its concerns, reported the Herald.
