Australian wagering firm Tabcorp has announced that it has been awarded a new Wagering and Betting License by the Victorian state government. The new license is valid for 20 years, starting from August of 2024.
According to a Monday announcement, Tabcorp’s license terms are ‘creating a level playing field in Victoria for taxes and fees and enhancing Tabcorp’s ongoing competitiveness’.
The license details that the company does not need a racing industry joint venture, and maintains exclusivity ‘before and during the term of the new license’.
The group is required to pay out some AU$600 million ($402 million) in June and annual payments of AU$30 million ($20 million) from August 2025 to 2043.
The group notes that the upfront payment next year will be ‘fully funded from existing debt facilities’.
The new license also implies that the group will cease its joint venture arrangement with the Victorian Racing Industry and the termination of its current ‘industry funding obligations’.
Tabcorp will furthermore be ‘paying wagering taxes and racing and sports product fees on the same basis as other waging operators’.
Tabcorp Managing Director & Chief Executive Officer, Adam Rytenskild said, “Today is momentous in the journey of our company post demerger. This is a positive outcome for our shareholders, the Victorian Government and industry stakeholders. I am particularly pleased with the terms we have secured under this new licence which directly addresses the structural reform required in the modern wagering environment. It’s a license that will allow us to ignite our total Victorian wagering business”.
Tabcorp was recently under fire by authorities for alleged breaches of anti-gambling harm measures, and a massive system outage.
The group has recently worked on reform measures, including changing its advertising strategy – ending its primetime television advertising – in a bid to get on the right side of authorities which are increasingly cracking down.
