Tabcorp, Australia’s largest domestic gambling operator, may not be the only bettor for buying the WA TAB as Starsbet and BetEasy are now rumoured to have joined the race for the planned privatisation of the betting agency. Media reports have suggested that the two companies are now eying a potentially lucrative deal after the value of the state-owned TAB dropped in half in recent years.
In October, the West Australian Government announced that it would be moving forward with the sale of the TAB in an estimated $500-million deal. The planned privatisation is part of a significant reform of the industry, according to the McGowan Government, which believes that the move will transform the betting monopoly into a much more sustainable business. Since the proposal, Tabcorp has been seen as the logical buyer of the TAB – it was established in 1994 after the privatisation of the Victorian TAB and now it owns betting and gaming operations across New South Wales, Victoria, Queensland, etc.
Other potential bettors for the TAB sale have emerged, however, at least according to some media reports. In a short article, the West Australian cited on Friday industry insiders who claim that Sportsbet is also interested in the deal although it currently has only a web-based operation. The bookie, which is owned by British gambling giant Paddy Power Betfair, is relatively popular in the country but has never been involved with brick-and-mortar shops. Its parent company, on the other hand, has a large network of betting shops, casinos and other betting businesses across Europe, UK and the United States.
The sources, who remain unnamed in the article, also believe that the Australian online sports betting and racing platform BetEasy would enter the battle for acquiring WA TAB assets, as well. The company, which was established in 2014 and purchased earlier this year by The Stars Group, had previously expressed interest in the retail market via a deal with Clubs NSW. Although it said that the WA TAB deal would not be profitable due to the new 15 per cent point of consumption tax, it may be looking into a brick-and-mortar presence, after all. The Stars Group is a leading Canadian betting and gambling operator, previously known as Amaya and having businesses nearly all around the world.
WA Tab Privatisation to Start as Early as Mid-2019
The sale of the West Australian TAB (Totalisator Agency Board) is long overdue, according to most experts. The privatisation process of the government-owned totalisator organisations and betting shops started in the country back in 1994 in Victoria when Tabcorp was established. The WA TAB has remained one of the few agencies that are still owned by the state but its declining revenues and relevance in a world where online betting is king have prompted the WA Government to take action.
In October, Treasurer Ben Wyatt said that the Government’s proposal was not a “budget repair” but aiming at achieving a true reform in the sector. He explained that in order to keep itself afloat, the TAB was “using its cash reserve” and new measures were necessary to ensure the “survival” of the sector. As per the proposal, 35 per cent of the proceeds from the privatisation would be allocated to a new racing industry infrastructure fund. In addition, TAB outlets would virtual animated horse and greyhound horse racing products.
Even more importantly, the planned reform includes a significant change in the current taxation model. The racing and wagering WA tax and the bookmakers’ betting levy would be lifted but a new type of tax would be introduced. This is the consumption tax which, for the first time in WA history, would cover online and offshore corporate bookmakers. The Government also says that the racing industry within the state would receive 30 per cent of the total revenue generated from the tax. In order for the planned sale to move on, the WA Government would need to pass special legislation, which is not expected before the summer of 2019.
- Author
Olivia Cole
