Tabcorp takes aim at online bookies in market share grab

Tabcorp is aiming to increase its digital market share to 30% over the next two years after announcing a $52 million profit in the six months that ended December 31.

Tabcorp introduced its digital gambling app in September last year and aired promotional videos during the 2022 FIFA World Cup broadcast. The gambling company now intends to take a more significant piece of the online gambling pie than the 25.1% it reported through the first half of 2022.

Adam Rytenskild, Tabcorp’s CEO, unveiled the company’s financial results and disclosed that Tabcorp intended to increase its digital revenue market by the 2025 financial year.

“I’m excited to announce that we are targeting 30% digital revenue market share by FY25,” Rytenskild said.

“We’ll do this with a transformation of our entire wagering ecosystem, including new products for punters, a reinvigoration of Sky Racing that will include a greater integration with TAB and the implementation of our new marketing strategy.”

“The successful launch of the new TAB App, which helped us retain digital market share despite the introduction of a new competitor, has provided a strong launch pad to reach our 30% target.”

The company also revealed that over the next few years, it would cut back on operating costs by around $20 million. The move aligns with Tabcorp’s transformation plan launched after its demerger with The Lottery Corporation in 2022.

“Now that our demerger has been successfully implemented we are in a position to create a new operating model that is simpler, more agile and delivers faster for customers. The cost discipline will also deliver stronger results for shareholders,” Rytenskild added.

The change in strategy comes after the gambling firm called out online bookmakers and asked that a regulatory overhaul be enacted to restrict advertising and increase oversight. Tabcorp further requested policies that benefit in-store gambling instead of betting on mobile apps.

The gambling company also called out Sportsbet’s collaboration with TikTok. While gambling advertisements are prohibited on the app, the company was given a strictly monitored trial.

“Regulating and restricting this type of gambling advertising is complex, and the current laws and regulations have not kept pace with emerging technologies and social media platforms like TikTok,” a Tabcorp report read.

Despite growing competition from foreign-owned betting sites, Tabcorp held on to its online market share in the second half of 2022. The company has been highly critical of rival bookies such as Betr, with Rytenskild pointing to the News Corp-backed firm’s infamous Melbourne Cup promotion where a $10 bet could get you $101 odds on any runner.

The Tabcorp boss claimed his company intended to meet all regulatory expectations while increasing gambling revenue.

“We respect the role of our regulators and value their position in our industry, with an aim to work with them to shape a safe gambling environment for everyone who participates in it and is affected by it,” the CEO said.

In its financial report, Tabcorp’s disclosed that it experienced a 58% increase in cash wagering revenue after the COVID-19 restrictions were lifted, allowing customers to patronize retail venues.

“Our business has rebounded strongly from a COVID impacted first half last year to experience strong growth in group revenue and EBITDA,” Rytenskild said.

“The COVID lockdowns presented an opportunity for digital-only operators, but our retail customers have quickly returned, and our digital transformation is amplifying that opportunity.

“I’m particularly pleased that, with new entrants entering the market and retail venues reopening, TAB held digital revenue market share for the first time since 2019.”

The overall revenue during this period increased by 11% to $1.27 billion.

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