Tabcorp Holdings Limited (Tabcorp) has achieved a milestone by securing the exclusive retail wagering and betting licence from the Victorian Government for the next 20 years.
The deal, which will come into effect in August 2024, marks a moment for both Tabcorp and Victorian racing and solidifies the operator’s position in the state.
The terms of the licence extension will also aim to create a level playing field by aligning Tabcorp with other Australian betting sites with regards to wagering taxes and fees related to racing and sports products.
If these new terms were applied during the year 2023, they would have resulted in a $140 million increase in Group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
As part of this agreement, Tabcorp has committed to making a payment of $600 million to the government on June 28, 2024.
Furthermore, there will be 19 payments of $30 million each starting on August 16, 2025.
To cover these payments, Tabcorp intends to utilise its existing debt facilities.
Tabcorp CEO Adam Rytenskild expressed his satisfaction with this achievement, highlighting that it is a good outcome for shareholders, the Victorian Government and industry stakeholders.
Despite facing competition from Sportsbet during the bidding process, Tabcorp still merged as the winner.
There had been concerns that the Victorian Government may have considered granting a non-exclusive retail wagering licence in the state, thereby giving other operators access to the retail betting.
Rytenskild emphasised that the new licence reflects the evolving landscape of betting and allows Tabcorp to strengthen its wagering business in Victoria.
He praised the collaboration between Tabcorp and the Victorian Government in developing a retail and tote license that addresses industry advancements and concerns about online bookmakers licensed in the Northern Territory.
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