Tabcorp, Australia’s largest gambling company, has secured a 20-year extension of its exclusive Victorian license for providing retail wagering services in pubs and clubs across the state. The renewed agreement with the government will take effect as of August 2024 with an upfront fee of $600 million, in addition to fixed annual payments of $30 million from 2025 to 2043.
The total payments equate to $1.1 billion, but as they were not linked to inflation, their total value stood at approximately $864 million.
Following the news that the gambling giant had secured a two-decade renewal of its exclusive rights, the company’s shares soared to 90 cents, equating to an increase of 22%.
Adam Rytenskild, Managing Director and Chief Executive of Tabcorp, said in a statement that winning the tough bid competition was a major corporate milestone: “Today is momentous in the journey of our company post demerger”.
He underlined that the move was equally beneficial for the company’s shareholders, the state government, and industry stakeholders. He shared his contentment with the negotiated terms, as they addressed “the structural reform required in the modern wagering environment”. The CEO added that the new terms would place the company on an equal footing with its competitors in Victoria. The betting and racing giant has been the holder of the sole rights since 1994.
Furthermore, Rytenskild noted that the structure of the payments was valuable to the shareholders, as it would allow the company to make more substantial investments in its products and services.
The company’s CEO added that the exclusive rights ensured “a safe wagering ecosystem for the community”. The extended license is set to serve as a stimulus for increased contributions to areas that need improvement.
Tabcorp Undertakes to Bring About Improvements in Animal Welfare Programmes and Responsible Gambling
This Monday, Tabcorp’s chief executive officer addressed media representatives and shareholders and highlighted the company’s dedication to making positive changes, with two essential initiatives at the forefront.
In the first place, Animal Welfare Programmes will benefit from the company’s funding. According to information from Adam Rytenskild, an investment worth $2.5 million will be directed toward such programmes within the racing industry.
In addition to the company’s commitment to the welfare of animals, Rytenskild highlighted its active participation in the field of responsible gambling. He confirmed that Tabcorp would be investing an additional $2 million into different responsible gambling programmes. The company would cooperate with the Victorian Government for the improvement of the existing resources for problem gambling assistance and research within the area.
Overall, Tabcorp’s CEO underlined the company’s commitment to initiatives that go beyond the sphere of gambling and reflect its engagement with society’s welfare.
- Author
Daniel Williams
