Tabcorp must submit board papers during Tatts merger hearing

The Australian Competition Tribunal has ordered Tabcorp’s CEO, David Attenborough, to hand over commercially sensitive board papers.

The hearing for the $11 billion merger between Tabcorp and Australia’s other gambling giant, Tatts, commenced on Tuesday and it has not been easy for the companies due to concerns of weakened competition in the wagering industry.

The sensitive documents were requested by the head of the three-man Tribunal, Justice John Middleton, after CrownBet’s barrister, Neil Young QC, heavily questioned Attenborough.

The documents include a three-year plan which was approved by the board last year and monthly results of the company’s wagering sector.

The papers are confidential and will not be released by the Tribunal.

The James Packer-backed corporate bookmaker is strongly against the merger of the two gambling entities and was granted leave as an intervenor.

The company is reportedly paying up to $20,000 a day for Young to handle the case.

A major issue raised by Young during the second day of the hearing was the Western Australia TAB which is the only state retail outlet not owned by Tabcorp. There have been talks regarding the privatisation of the WA TAB, though.

“We would obviously look at that business if it were put up for sale,” Attenborough said.

The former liberal government had planned to sell the WA TAB and Labor said it was willing to sell if the racing industry agreed.

But now the Treasury has warned of the sale, suggesting it could impact the state’s cash flow.

“The revenue that flows through the TAB flows through the state’s accounts and if the TAB is sold, that has an adverse impact, potentially, on the state’s credit rating,” WA’s Premier, Mark McGowan, said.

Still, the privatisation was the main point of contention for Young who managed to get Attenborough to admit the WA TAB would be a growth opportunity for Tabcorp.

Attenborough revealed Tabcorp would benefit from buying WA TAB through the tote pool, though he added that “more benefits will come from combining the fixed-odds pools”.

Attenborough was quick to point out CrownBet’s parent company, Crown Resorts, suggesting the company could benefit from synergies by Tabcorp taking over WA TAB.

“Crown have the licence for Keno and the ability to roll out Trackside, so some of those synergies would be available for them,” he said.

Young also got Attenborough to agree that outside of WA, Tabcorp and Tatts were the only off-course outlets which could accept wagers in cash.

But Attenborough added the number of punters who want to place bets in cash is “declining”, which he said he was worried about.

“We’re very concerned,” he said. “Can I explain why?”

“No, just let me ask my questions,” Young said.

Tabcorp told the Tribunal the merger should be approved since it will benefit the racing industry via funding, as well as benefitting pubs and clubs which have TAB machines. This is despite ClubsNSW slamming the deal.

The company has also referred to the increasing competition from online bookies as mobile and Internet gambling becomes more popular.