Racing NSW, Tabcorp end $6 million lawsuit days before McLachlan starts new role

Incoming Tabcorp chief executive Gillon McLachlan has dodged a looming legal nightmare after Racing NSW reached an agreement to discontinue a $6 million lawsuit against the gambling giant and major sponsor of The Everest.

Former AFL boss McLachlan, who will start his role at the helm of the ASX-listed Tabcorp next month, will have one less issue on his plate after the contentious case before the NSW Supreme Court ended.

Racing NSW had alleged Tabcorp had breached its obligations in failing to promote one of its rich spring carnival races, The Kosciuszko.

The Kosciuszko is a race in which punters are asked to buy $5 sweepstakes tickets, with 14 winners negotiating deals with the owners of bush-based horses to run in the $2 million race and then split prizemoney.

But the matter has been discontinued and Racing NSW will not pursue the matter in the countdown to this year’s spring carnival, which will feature the $20 million The Everest, the world’s richest horse race on turf, after an “amicable agreement” with Tabcorp.

Tabcorp has been the long-time naming rights partner of The Everest.

Gillon McLachlan and Peter V’landys.Credit: Getty Images

McLachlan and Racing NSW chief executive Peter V’landys have already met before the former AFL supremo starts his new role in the wagering world. The pair enjoy a mutual respect after years of advocating for their respective football codes.

Aside from his role at Racing NSW, V’landys has been the Australian Rugby League Commission chairman since 2019 and doggedly fought for government and corporate support, as well as participation numbers, in the face of the AFL.

But the pair won’t have to face a potentially lengthy and costly civil case dragging through the courts now that the legal action has ended.

Racing NSW claimed it would lose “no less than $6 million” in future revenue stemming from accusation Tabcorp breached a sponsorship and strategic alignment agreement for The Kosciuszko. The deal is due to run until 2031.

In a statement to this masthead, Racing NSW and Tabcorp said: “The issue has been amicably resolved and proceedings discontinued.”

Asked about McLachlan’s appointment to the Australian gambling giant, V’landys said last month: “I think he’ll do an excellent job for TAB, he’s a very smart guy and a great dealmaker.”

McLachlan confessed that he “knew who the boss was” and was eager to start in his role with Tabcorp, which would require a close working relationship with Racing NSW.

“I’ve always had maximum respect for Peter and am looking forward to doing business together,” he said.

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