CrownBet: Plan would “stifle competition”
Gaming industry stakeholders are alarmed at plans by the soon-to-merge Tabcorp and Tatts Group to raise racing pool prices on the weekends under an initiative named “Project Alfred.”
According to SBC News, the Australian Competition & Consumer Commission revealed the plan which would follow “Uber surge-style pricing models” for the businesses, which are planning an US$11 billion merger.
ACCC says Project Alfred “casts doubts” on Tabcorp-Tatts maintaining a fair marketplace for betting consumers. It has urged the Australian Competition Tribunal to recall Tabcorp CEO David Attenborough to explain his firm’s position on weekend pricing and to disclose all information and documents on Project Alfred.
Last month, competitor CrownBet detailed its concerns to the ACT, with CEO Matthew Tripp personally stating that all market consumers would be affected by the merger with lesser odds and higher charges.
“Tabcorp wants punters to pay the price for the merger through worse odds and service,” Tripp told the ACT. “If the merger goes ahead, the price of wagering services will rise and irreversible changes to the market will stifle competition.”
Meanwhile, CrownBet is going to the Supreme Court of New South Wales hoping to speed approval of its digital wagering advertising deal with licensed clubs in NSW, local media reports.
CrownBet first announced its partnership with ClubsNSW in February, allowing the online operator to offer its digital betting services to punters in NSW venues, reported the Australian Financial Review.
Under the terms of the partnership, participating clubs in NSW would be able to earn commission on any bets made with CrownBet while in-venue punters could win club loyalty points. But soon after the announcement, Liquor and Gaming NSW announced it would review the arrangements, given Tabcorp’s exclusive license to run wagering operations in NSW. The review is ongoing.
“There has been substantial demand for CrownBet’s offering from licensed venues across New South Wales that we want to meet as soon as we can,” said Tripp. “We’ve taken this step to provide certainty to the hundreds of clubs that want us to be able to advertise in their venues.”
