The Government of Premier Mark McGowan has terminated the planned sale of the last state-owned betting company, WA TAB, after looking for a suitable buyer for more than three years.
Western Australia (WA) Government revealed that it has not been able to find a takeover offer that fitted its policy objectives, after reports that deals estimated at over AU$1 billion collapsed. Premier Mark McGowan explained that local lawmakers had spent significant time and effort trying to deliver a result that could balance the long-term interests of both the state and WA racing industry. Unfortunately, the Government had been so far unable to do so.
Earlier this week, the Government of Western Australia issued a statement, saying that it had scraped off the talks with a preferred candidate who, however, turned out unable to ensure the necessary financial commitment for the sale to be processed. As a result, the WA TAB business will continue to be run by Racing and Wagering WA under the ownership of the State Government.
Tony Buti, the Racing and Gaming Minister of the state, said there was not a single competitor for the WA TAB business who was able to give certainty throughout the negotiation process that they would be able to take care of the local industry and taxpayers’ best interests. Mr Buti confirmed that Racing and Wagering WA would continue to operate the WA TAB to the benefit of the state’s racing sector.
Preferred Candidate Failed to Prove Necessary Financial Capabilities to Proceed with WA TAB Sale
Back in 2019, Western Australia lawmakers passed a piece of legislation allowing the sale of the WA TAB business, along with permission for any successful competitor to offer electronic simulated racing games in TAB outlets there, regardless of the state-wide ban on so-called pokies and simulated racing games outside the Perth casino of Crown Resorts.
At the time, the move to enable such digital racing products in TAB outlets across the state triggered warnings from gambling industry experts that such a move would open the gates for what they described as the most dangerous form of gambling.
The McGowan Government has been hopeful that it would be able to secure the future of the local racing sector, as reports claimed that the WA TAB business was being operated on cash reserves at the time.
The sale process initially ceased in August 2020 because of the Covid-19 pandemic but was renewed in October 2021 after Racing and Wagering WA requested so. Now, the organisation shared how disappointed in the unsuccessful sale it was. It said that it would continue to operate the WA TAB for the benefit of the local racing industry and shared an intention of maintaining strong regulatory, financial, and animal welfare oversight in line with all codes and requirements.
At first, state lawmakers sought expressions of interest from the market, and then unveiled a Request for Binding Offers stage that ended with three selected respondents. Within the last month, the WA Government initiated negotiations with its preferred candidate but unfortunately, the latter failed to prove enough financial capabilities to support its takeover offer.
- Author
Olivia Cole
