Tabcorp loses NSW pub monopoly as Entain makes its move
Tabcorp no longer has the monopoly on NSW pubs, with Entain ready to set up in 1800 pubs and hotels across NSW.
Entain is one of the world’s largest wagering companies. It has struck a sponsorship and promotion deal for its Ladbrokes and Neds digital betting brands that will see those brands go head-to-head with Tabcorp’s venues.
Tabcorp will have further competition from Matthew Tripp-led BetR, which is set to launch next week and is also competing with Tabcorp and Entain for the $1 billion West Australian wagering licence.
It’s been a rough trot for Tabcorp, which recently lost the advertising rights to racetracks in Queensland as part of an exchange to settle lawsuits against it.
The Australian Hotels Association (AHA) believes the competition will be healthy.
“For decades now, many NSW hotels have operated PubTABs for Tabcorp at a significant loss – primarily due to high Sky Channel and (electronic betting terminal) fees,” AHA chief executive John Whelan said.
“In country NSW it’s even worse, with the majority of country pubs currently running their PubTAB at a loss. Today’s partnership with a world leader in Entain will finally give NSW hotels competition and choice.”
Tabcorp was on the front foot in its response saying gambling issues would increase.
“We are disappointed, particularly given Tabcorp provided around $50 million in fee relief for NSW pubs to manage the impact of Covid shutdowns,” a company spokesman said.
“TAB has the exclusive retail license in NSW until 2033 and we will work closely with the NSW Government to ensure that exclusivity is maintained and modernised, in line with community standards. This advertising agreement highlights that the current 25-year-old legislative framework needs to be reformed.”
Whelan did acknowledge Tabcorp’s support for AHA through its exclusive retail licence arrangement in NSW.
“Retail wagering in our venues is extremely important, with NSW pubs generating about half the current national PubTAB turnover. Tabcorp has a long-term exclusive retail licence in NSW and, of course, we will continue to support TAB retail in-venue.”
PubTAB outlets exist in more than 1000 venues across NSW, which will not be able to install physical Entain wagering facilities.
London-listed Entain is predominantly chasing phone betting punters who bet while eating and drinking in pubs and hotels.
“While there is still value in more traditional cash retail wagering, there is a highly engaged audience of punters who like to go down to their local for a bet with their mates, and how they do that has evolved,” Entain chief executive Dean Shannon said
“This partnership recognises that evolution and is about offering choice for the benefit of AHA NSW members and their patrons. There is no reason why traditional cash wagering can’t coexist in a hotel, alongside an advertising sponsorship arrangement with Entain that promotes the digital offering of one of our leading brands.
“Our patrons are already exposed to advertising from corporate bookmakers on our pub TV screens, on the radio, in newspapers and on their phones,” he said.
“Increasingly people are choosing to bet on the races or the footy on their phones – not in the traditional retail environment.
“Today, most people betting on their phone in a NSW pub are placing a bet with Ladbrokes, Neds or another corporate bookmaker.”
Entain is not permitted to advertise its brands on exteriors, however it will look to repeat the successful integration of the brand into lounges as it has done at Mooney valley racecourse in Melbourne.
BetR will launch next week in time for the Caulfield Cup in a partnership with News Corp Australia, Las Vegas-based Tekkorp Capital, and ASX-listed BetMakers Technology Group.
Irit Jackson - 18-10-22
