The government of New South Wales and TABCORP Holdings Ltd, an Australian wagering, gaming and Keno operator and one of the world’s largest publicly listed gambling companies, are now approaching completion of a new deal which could see an extension to TABCORP’s monopoly in the region. There are also still suggestions, albeit unlikely ones, that a competitor may swoop in and strike up a deal with the government if a decision is not met soon. That being said, it seems apparent that as negotiations have continued, there is little interest from TABCORP’s competitors, meaning it is pretty much open season for the company in Australia’s biggest gambling market.
Estimates place a 15-year extension to the monopoly at a worth of around $80 million to TABCORP, and the negotiations for such an agreement may cost the wagering and gaming firm around $50 million.
Currently, TABCORP has an exclusive monopoly on over-the-counter TAB operations throughout the pubs, clubs and other outlets in New South Wales. However, if a new arrangement is not decided upon between TABCORP and the New South Wales government by the end of June, then other outfits may have an opportunity to fill the void. As there are not many presenters in the way of competition, it appears that TABCORP may be in the better bargaining position as the New South Wales government has little else from which to pick.
Australians Gamble Plenty
With recent studies showing that Australians spend more of their hard-earned cash on gambling than any other nationality on the globe, particularly in New South Wales and Victoria, TABCORP will certainly welcome a strong position of negotiation.
Boasting such a high exchange of currency in the gambling world isn’t necessarily a good thing though, and is leading many to lobby for more stringent gambling laws, such as the ban on live odds promotion currently being debated in Australia. Should this trend continue, then rules could become tighter and business could become much more difficult in the country as a whole.
All in all, Australia is both a gold mine and a mine field at the moment, rife with both customers and lobbyists, and all of this will obviously affect the kind of deal TABCORP will be looking to strike up with the New South Wales legislators, which could result in tough decisions on both sides over the coming weeks as negotiations continue.