Today, sources familiar with the matter revealed that the Australian gambling company Tabcorp is unwilling to enter the competition for becoming the next operator of the UK National Lottery and participate in the bidding process that is given a start in 2020.
As Casino Guardian has already reported, the local gambling regulator – the UK Gambling Commission (UKGC) – has chosen the investment bank Rothschild to take into consideration the potential bidders interested in being the ones to receive the license to run the UK National Lottery. The current licence to run the operation is held by Camelot Group and is set to expire in 2023. The companies interested in receiving the licence were given until January 22nd, 2020 to respond to a consultation preceding the beginning of the tender process.
Yesterday, rumours emerged that the largest gambling operator in Australia, Tabcorp, is preparing to enter the competition for the UK National Lottery operating licence. However, today, sources close to the matter revealed that Tabcorp was not likely to take part in the bidding process, as, for the time being, the gambling giant preferred to remain more focused on its priorities in the Australian market.
Australian Gambling Giant Remains Focused on Domestic Market Presence
According to gambling analysts, Western Australian TAB remains the priority for the company in its domestic market, especially considering the fact that the Government of Western Australia rolled a privatisation process for it in September 2019. For the time being, Tabcorp is considered the most logical contender for the licence but it would undoubtedly be forced to face serious rivals, as some foreign online betting companies that operate in Australia are also willing to get it.
Elise Kennedy, an analyst in Morgan Stanley, said that an acquisition of the WA TAB could be successful for Tabcorp, as it currently remains the only reported bidder for the licence that already has a retail presence in Australia. The Australian gambling giant is also the one that seems to have the most financial benefit from the deal. According to Ms Kennedy, the advantages from the possible acquisition of WA TAB may be limited for the company, too.
Recently, Tabcorp has joined forces with its rival Tatts Group in a deal that ended up forming the largest gambling company on the territory of Australia. The gambling behemoth currently holds operating licences for both retail gambling and lotteries in every Australian territory and state, except Western Australia.
Back in 2016, Tabcorp entered the UK gambling sector by launching its online gambling service Sun Bets as a joint venture, but ended the business only a couple of years later, as it decided to exit the market. The company has been considering possible expansion into the sports betting sector of the US following the US Supreme Court ruling that lifted the long-year ban on the services.
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Olivia Cole
