Tabcorp to sign deal with NSW pubs

Tabcorp will soon be announcing a five-year partnership with the Australian Hotels Association which will allow pubs to be incentivized for bets placed by customers using the TAB app, local media reports.

Under the deal, around 1116 NSW pubs will be eligible to receive a commission from bets placed at their venues on the TAB app.

“We are pleased to reach this agreement with the AHA NSW and its member hotels. Having a bet in a pub is an Australian social tradition and this partnership helps us and our venues to deliver the best wagering experience,” said Tabcorp CEO David Attenborough.

“At the same time, we are making sure pubs benefit no matter how customers choose to bet within the venue.”

The Tabcorp deal is seen as a response to a recent partnership between CrownBet and Clubs NSW, which will allow the online operator to offer its digital betting services to punters in NSW venues.

Tabcorp said pubs accounted for about A$1.6 billion (US$1.2 billion) in annual turnover for the group.

AHA NSW chief executive John Whelan said wagering turnover through the state’s hotels remained strong, and the Tabcorp deal would give pub customers flexibility to place bets.

“We’re thrilled to partner with Tabcorp for a further five years,” said AHA NSW chief executive John Whelan. “We’re particularly excited with the direction Tabcorp is heading with digital wagering in PubTABs and we’re looking forward to the rollout of new hotel products and technology over the next five years.

“This partnership will allow us to provide punters an even better pub wagering experience,” he added.

CLSA analysts sees the deal as positive for the wagering giant.

“Tabcorp’s digital commission model reduces the company’s margin on digital turnover, but also seeks to encourage venues to sign-up new customers driving growth. Retail remains a risk for Tabcorp, but on balance we believe the outlook remains favourable, particularly if Australia moves towards a universal point of consumption tax on wagering turnover,” said the brokerage.