Australian betting company Tabcorp has started legal action against Entain and the New South Wales (NSW) division of the Australian Hotels Association (AHA) over their alleged failure to unveil enough information regarding the advertising deal they have recently agreed on in the state.
The beginning of the week saw Tabcorp commence legal proceedings against AHA’s NSW unit and Entain in New South Wales’ Supreme Court. The largest gambling operator in Australia is seeking preliminary disclosure from the two parties. Representatives of the company wrote to both groups to warn them their deal may raise the risk of violation of the Unlawful Gambling Act of 1998.
For the time being, the clubs and pubs across NSW have the exclusive right to operate the retail betting operations of Tabcorp in their venues thanks to a long-standing state operation licence that the group managed to extend in 2013 for 20 more years until 2033.
However, in October 2022, Entain signed a deal with the NSW division of the Australian Hotels Association. Under the provisions of the agreement, local pubs will be allowed to promote the online betting platforms of rival operators Neds and Ladbrokes, without violating their arrangement of the exclusivity rights.
As mentioned above, Tabcorp claims that the Australian Hotels Association’s NSW unit and Entain have not provided enough information to the company regarding the advertising deal so that Tabcorp is able to decide whether to start substantive proceedings or not. In case the Australian gambling giant commences such proceedings, such a move would involve making a claim for damages or an injunction against Entain and NSW Hotels Association.
Tabcorp Behaved as State and Country Monopoly, Racing NSW Says
Both the NSW division of AHA and Entain confirmed that they had been served legal documents but said they will not comment further on the matter.
At the time when the two companies signed their agreement, a source close to Racing NSW said that Tabcorp got exactly what it deserved after behaving as a monopoly in the state and the country. It also shared that the racing body of the state will be paying close attention to the moves of Entain further in time. Recently, Racing NSW managed to reach a settlement of an ongoing argument with Tabcorp over the AU$11-billion split of its betting and lotteries unit.
It was recently revealed that Tabcorp would surrender revenue of up to AU$50 million by providing Australian clubs and pubs with free access to Sky Racing by 2024. The move was part of a push aimed at gaining back market share from some of its local competitors, including Entain. The country’s largest betting operator charges more than 4,870 clubs and pubs across the country about AU$12,000 a year to stream the Sky Racing channel which broadcasts various harness, thoroughbred and greyhound races. However, some venues have questioned the subscription’s value with many high-profile races.
Eventually, it has made a decision to remove the fees for the Sky Racing channel for pubs in the Australian Central Territory (ACT), Tasmania, and Queensland by December after the Governments in the aforementioned jurisdictions committed to changing the taxation of gambling. The rest of the Australian states will see their tax removed on a staggered system before it is fully dismissed in July 2024.
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Olivia Cole
