The Government of Victoria is reportedly considering the ratification of a non-exclusive deal between a number of gambling operators for the state’s gambling licence. However, according to reports, the current holder of the licence – Tabcorp – is set to still push for exclusivity in local clubs and pubs for another twenty years.
The Australian gambling giant Tabcorp and the Greek gambling company Intralot have emerged as the only two operators interested in competing for an exclusive gambling license in the state of Victoria. Still, there is a chance that the competent authorities provide up to three gambling operating permits – an option that has attracted the interest of no less than two companies seeking a more affordable alternative.
As the Australian Financial Review reported, people familiar with the matter, who asked not to be named because the discussions have been private, revealed that the local bookmaker PointsBet and the British gambling giant Flutter Entertainment were among the interested parties in a non-exclusive, cheaper operating permit. Both companies are expected to submit bids for such a licence by the end of the day. Another British gambling giant, Entain, publicly left the application process, saying that it was unclear whether it would be able to access a customer database built up by Tabcorp, as the current exclusivity licence holder.
According to some sources close to the process, this decision of Entain may be a strategy aimed at reducing the enhanced competitive tension. Some get even further in their projections, saying that the British gambling operator may make another attempt to acquire Tabcorp after its first try ended up with a failure. People close to Entain, however, still insist that the company’s decision to no longer participate in the competition for the non-exclusive gambling licences resulted from the flawed process.
Tabcorp and Intralot Could Be the Only Ones Pursuing Exclusivity Wagering Licence
The wagering licence of the state of Victoria was previously considered a particularly attractive one as it provided its respective holder with the right to operate sports betting services in brick-and-mortar outlets and pubs and offer specific products to the customers in one of the biggest betting markets in Australia.
Unfortunately, the wagering operating permit has become less favourable for its holder over time, considering the quick popularisation and expansion of online betting that sees a smaller number of punters visiting TAB outlets and pubs to place bets. However, market experts believe that the looming threat of a full ban on gambling advertising live sports events could make the Victorian betting licence more valuable now.
As mentioned above, the Australian gambling giant Tabcorp is the incumbent holder of the licence. As a result, the company has exclusive rights to offer specific products to Victorian residents and operate sports betting in shops and pubs across the state. Although it is still hoping to get exclusivity and continue offering the services by itself, Tabcorp is expected to submit a proposal for a situation where the authorities eventually share the licence between several companies.
According to market experts, Intralot is the only other company expected to place an offer for wagering licence exclusivity. The operator, whose lotteries are now present all over the world, was a major player in Victoria until 2014 when it ended its scratchcard and keno businesses. At a later stage, the company took the state of Victoria to court, claiming it had been misled and intentionally withheld from competing with Tattersalls, the largest gambling operator in the state.
Sources familiar with the situation have revealed that a decision on the Victorian wagering licence is not expected until October 2023. For the time being, the value of the operating permit remains unclear, because the state Government has not made a decision on the exact length of the licence term, as well as on the potential exclusivity of the successful bidder, yet.
- Author
Daniel Williams
