Tabcorp in talks to exit Sun Bets

Australian wagering giant Tabcorp is in discussion with News UK to exit its struggling Sun Bets venture, which has reportedly cost the group more than $135 million in two years.

The agreement between Tabcorp and News UK to operate the betting business began in December 2015, which is set to run over the course of ten years.

However, last October, Tabcorp acknowledged that Sun Bets had been performing lower than expectation, and subsequently launched a strategic review of the business.

On Friday, Tabcorp said it had concluded its review and is now in discussion with News UK about a proposal to exit its agreement to operate Sun Bets.

Tabcorp said it has also commenced collective consultation with Sun Bets employees regarding the proposal, in line with UK employment law obligations.