Tabcorp after NZ TAB fixed-odds business

Australian wagering giant is reportedly looking to launch a takeover bid for the management rights of the fixed odds business of New Zealand’s TAB, the Australian Financial Review’s Street Talk reports.

The move is said to be part of the wagering giant’s push into overseas markets to diversify its earnings.

On Tuesday, The New Zealand Racing Board, which runs the TAB confirmed Tabcorp was one of three organizations bidding for the contract.

The New Zealand Racing Board is currently in discussions with three organizations, of which Tabcorp is one, to explore options to automate our fixed-odds betting operation,” said New Zealand Racing Board chief executive John Allen. “There are no plans to privatise the TAB.”

Local sources say the other bidders could be Australia’s Tatts Group, William Hill and Paddy Power.

The New Zealand Racing Board saw turnover of NZ$2.4 billion (US$1.7 billion) in 2014-15 and net profit of NZ$144 million.