Home NewsRegulations & Licenses Tabcorp receives exclusive license for Victoria that lasts 20 years

Tabcorp receives exclusive license for Victoria that lasts 20 years

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Tabcorp, the exclusive provider of wagering in Victoria (Australia) for 20 years.

The gambling group, which has held its current licence since 2012, will pay the Victorian government more than AU$1bn (PS521.0m/EUR604.0m/US$642.0m) over the next two decades. Tabcorp’s license period begins in August 2024. This is immediately following the expiration of its exclusive licence.

Tabcorp is granted a licence to operate betting in Victoria. This includes the exclusive right to accept bets outside racetracks. If the new terms of licence had been applied to 2023, pro forma group EBITDA could have increased by $140m.

Tabcorp license has changed

Tabcorp is no longer required to participate in the Victorian racing industry’s joint venture agreement, and the industry’s current funding obligations have also been terminated. Tabcorp will pay racing and sport product fees, wagering tax and other operator’s fees.

Tabcorp is paying a license fee of AU$600m to the Victoria Government in June 2024, and will make 19 payments each year of AU$30m beginning August 2025. Tabcorp stated that it plans to fund its June 2024 payment in full from the existing debt facility.

Adam Rytenskild said that the Tabcorp chief executive was adamant about making changes to Tabcorp in order for it to be competitive with Northern Territory licensed rivals.

Today is a momentous day in our journey as a company after demerger. He said that this is an outcome which benefits our investors, the Victorian Government and other industry stakeholders.

I am especially pleased with the conditions we secured in this new license, which addresses directly the structural reform needed in modern betting environments. This licence will enable us to ignite the Victorian betting industry.

This announcement is a continuation of the momentum we have gained in our transformation. Our company is faster, more agile and simpler. “We’re fulfilling our promises and giving customers an improved experience, with a faster time to market.

Victoria’s license process

Organisations were asked to express their interest in the license for wagering by June 2022. In April 2023, selected respondents were invited to submit a formal application.

According to the Ministry for Casino, Gaming and Liquor Regulation, applications for the new license were rigorously assessed against a number of criteria including corporate and personal probity, harm minimisation, and economic benefits for the state. New licences support robust measures for harm minimisation to promote responsible gambling.

Melissa Horne is the minister of casino, gaming, and liquor regulations. She said, “The Allan Labour Government is committed to reducing gambling-related harm, and the new betting and wagering licence establishes strong mechanisms for harm reduction and consumer protection.

We support a sustainable betting and wagering market in Victoria that is based on harm minimisation.

Tabcorp’s Q1 results are mixed.

Tabcorp has reported that its revenue fell 6.1% on an annual basis in the last quarter, despite a rise in digital betting turnover. In the quarter ending 30 September, media and betting revenue dropped 5.4%. Tabcorp reported fixed-odds returns of 14.8%, compared with 15.0% in the previous year and an average three-year period of 15.6%.

Tabcorp had a difficult first quarter, having received a series of fines in Australia.

Tabcorp has been fined AU$1.0m, a record amount in Victoria. Tabcorp was fined AU$1.0m for its conduct after the WBS (Wagering and Betting System) failed during Spring Racing Carnival 2020.

Victorian Gambling and Casino Control Commission slammed Tabcorp for its actions. The commission said that the operator had not provided adequate information regarding the outage voluntarily and criticized its conduct throughout the investigation. Tabcorp’s “repeated refusal” to follow directions was also criticised.

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