Tabcorp threatens to remove machines over CrownBet deal

Tabcorp has penned another questionable letter to ClubsNSW, this time threatening to remove its TAB facilities.

TABCORP Chief Executive, David Attenborough, has written a second letter suggesting the company could potentially remove TAB machines from all NSW venues which install the CrownBet machines.

“Tabcorp has not confirmed to Clubs NSW that its ‘retail’ wagering service will be available to operate alongside CrownBet’s ‘digital’ wagering service,” the letter read.

This follows the first letter which targeted clubs planning on installing ATM-style machines, developed by CrownBet, suggesting they could be breaching the law.

These letters were sent a week after it was announced ClubsNSW and the digital betting site would team up.

According to the Daily Telegraph, ClubsNSW chief executive, Anthony Ball, revealed he found the letters to be threatening and the clubs shouldn’t stand for it.

“Tabcorp has sent two letters to clubs in recent days, questioning the legality of the digital wagering partnership and threatening to pull its cash wagering facilities out of any club that signs up with CrownBet, while at the same time pushing their own digital offering,” Ball wrote to the club chiefs.

“These letters from Tabcorp are threatening and at odds with the public comments of its CEO, David Attenborough, who recently said: ‘At the moment all operators can offer digital in venues … ’.

“Now, after being unsuccessful in the tender process, it seems they have changed their mind.”

He said ClubsNSW are being compliant with the state government and Liquor and Gaming NSW to address any regulatory concerns with the CrownBet deal, including the breaches of the Unlawful Gambling Act 1998 as outlined in Attenborough’s first letter.

Tabcorp referred to section 31, which prohibits both owner and occupier from knowingly allowing the premises to be used as a gambling venue – this is relevant since CrownBet will pay clubs commission for every member who places a bet on the app while in the NSW venue.

But a spokesperson for the office of Racing Minister, Paul Toole, has revealed it has reached out to the Liquor and Gaming regulator in regards to the legality of the offer to ensure all aspects are covered.

Tabcorp refuses to kiss and make up with ClubsNSW

Ball said he has offered to meet with Attenborough to discuss his concerns over the deal.

“He has rejected that offer, despite claiming to be in dialogue with Clubs NSW,” he said.

“I will continue to extend that offer and discuss this matter for the benefit of our clubs.”

As CrownBet installs the machines in hundreds of clubs around NSW, members will be able to withdraw winnings, instead of transfer the funds back to personal bank accounts – a feature many punters dislike with online bookies due to waiting periods.

“Tabcorp’s position is that it is the only operator that is authorised under NSW law to provide off-course ­wagering services in NSW,” a Tabcorp spokesman said.

“We believe that the CrownBet arrangements constitute a form of off-course wagering service that is unlawful.”

Our take – Will the digital realm triumph again?

Tabcorp and ClubsNSW do agree on one thing – the hundreds of clubs around the state, as well as the gaming regulator and the state government, are all going to have to choose sides.

Club chiefs have reportedly complained about the costs of Tabcorp facilities, including the Sky Racing Broadcasting service, and the decline of revenue with TAB machines due to punters turning online.

But Tabcorp also provides Keno facilities to more than 1800 clubs in NSW. This has resulted in an upfront payment of $25 million to the government in exchange for Tabcorp to extend its keno license to 2050. While there is no indication Tabcorp would remove its Keno facilities too, it’s a possibility. This could be a feature which pushes the NSW government to side with Tabcorp – and hinder the CrownBet deal.

But would Tabcorp really remove its machines from hundreds of clubs around NSW, or is it an empty threat?

With over 1000 TABs in clubs all around the state, removing these revenue-generating machines doesn’t seem profitable for the company – especially since it has just forked out $45 million for money laundering, and plans to secure an $11 billion merger with Tatts. But if only a few clubs side with CrownBet, as the CEO of ClubsNSW has urged them to do, Tabcorp may just withdraw a couple of hundred machines.