Tabcorp signs five-year wagering deal with NSW hotels

Forget the clubs, Tabcorp has sealed a new five-year deal with New South Wales’ pubs and hotels.

After the gambling giant missed out on the digital wagering deal with ClubsNSW to Crownbet, Tabcorp desperately needed a solution to compete with the online betting company.

The new deal with the Australian Hotels Association (AHA) NSW is Tabcorp’s answer, with it also set to prevent Crownbet or other bookies from pushing into this territory.

Improved commissions for pub owners is being attributed as the main selling point of the Tabcorp agreement which involves around 1116 hotels and pubs in NSW.

The venues will receive new televisions and betting machines and commission for all bets placed inside participating venues via Tabcorp’s smartphone app.

Venue owners will now get approximately 1.8 percent commission on every bet placed through the app, which is currently what they get for bets placed over the counter.

A Tabcorp spokesman explained punters’ location is determined via location services and venue owners will also receive a commission if someone opens a Tab account while in pub or hotel – similarly to a recent deal with community clubs in Victoria.

Chief executive David Attenborough said the new deal would offer a superior wagering service.

“We are pleased to reach this agreement with the AHA NSW and its member hotels,” Attenborough said.

“Having a bet in a pub is an Australian social tradition and this partnership helps us and our venues to deliver the best wagering experience.

“We are making sure pubs benefit no matter how customers choose to bet within the venue.”

AHA NSW chief executive, John Whelan, said wagering income has remained strong and he is excited about the five-year deal.

“We’re particularly excited with the direction Tabcorp is heading with digital wagering in PubTABs and we’re looking forward to the rollout of new hotel products and technology over the next five years,” he said.

“You can’t beat an afternoon at your local pub with friends having a few bets. It’s a unique Australian tradition.”

Just a few months ago, Tabcorp lost out to CrownBet in a bid to provide digital wagering services to ClubsNSW.

Tabcorp’s smartphone app is similar to what CrownBet will offer around 1200 clubs in the state.

What makes the deal different, though, is the ATM-style machines James Packer’s online betting company will deliver to NSW clubs. These machines allow punters to withdraw their winnings instantly instead of transferring them to a personal account.

Tabcorp was a frontrunner to win the deal with ClubsNSW, so it was a surprise when CrownBet secured the transaction.

ClubsNSW chief executive Anthony Ball commented on the deal back in February, stating clubs were losing money since punters were using mobile devices instead of manually placing bets in person.

Tabcorp didn’t take the loss too well, writing several letters threatening to remove its retail wagering services from participating CrownBet clubs – something it has yet to follow through with.

The CrownBet deal is still being reviewed by Liquor and Gaming NSW after it was alleged the deal breaches the law.