Tabcorp Secures Exclusive 20-Year Wagering Licence in Victoria

Tabcorp, a leading gambling group in Australia, has secured a coveted 20-year exclusive licence to offer wagering and betting in Victoria, bolstering its position in the Australian gambling market. This strategic achievement, commencing in August 2024, follows the expiry of its current exclusive licence and involves a substantial payment commitment to the Victorian government.

Major win for Tabcorp! The gambling giant clinches a 20-year exclusive wagering licence in Victoria, enhancing its market presence and strategy.

Under this new agreement, Tabcorp will pay more than AU$1 billion (£521.0m/€604.0m/US$642.0m) over the next two decades to the Victorian government. This licence authorizes Tabcorp to conduct various betting activities in the state, including the unique right to offer in-person betting outside of racetracks. Had these terms been in place for 2023, Tabcorp’s group EBITDA would have seen a $140 million boost on a pro-forma basis.

This licence signifies a pivotal shift in Tabcorp’s operations, releasing it from the obligation to collaborate on the joint venture with the Victorian racing industry and ending current industry funding obligations. Tabcorp will now pay wagering taxes and racing and sports product fees akin to other operators, enabling a more competitive and level playing field.

Stay tuned for Tabcorp’s journey under this new licence. The changes usher in a new era for the company, promising to ignite its total Victorian wagering business and drive transformational growth.

The financial structure of the licence includes an upfront payment of AU$600 million in June 2024 and 19 annual payments of AU$30 million starting August 2025. CEO Adam Rytenskild expressed confidence in these terms, highlighting them as crucial for competing with Northern Territory-licensed rivals and igniting Tabcorp’s total Victorian wagering business.

In the licensing process initiated in June 2022, organisations were invited to express interest, with select respondents formally applying in April 2023. The applications underwent rigorous assessment, focusing on corporate and individual probity, harm minimisation, and economic benefits to the state.

Melissa Horne, Minister for Casino, Gaming and Liquor Regulation, emphasized the government’s commitment to responsible gambling, stating, “The new wagering and betting licence sets strong mechanisms for harm minimisation and consumer protection.”

Despite recent challenges, including a 6.1% year-on-year revenue decline and regulatory penalties, Tabcorp’s securing of this exclusive licence marks a significant turning point. The company is poised to leverage this opportunity to reinforce its market position and navigate the evolving landscape of Australian gambling with a focus on sustainable and responsible growth.