Victoria’s racing review ‘put on ice’, bids for wagering licence terminated
A radical overhaul of Victoria’s punting industry has been put on hold, with the State Government terminating bids for a multi-billion wagering licence.
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Exclusive: A radical overhaul for Victoria’s punting industry has been put on ice, with the State Government terminating bids for the state’s multi-billion wagering licence.
Tabcorp is now expected to get an extension on its lucrative deal, which gives it the right to run retail outlets, fixed odds and pari-mutuel betting.
A percentage of bets placed with Tabcorp under the current deal are returned to Victoria’s racing industry to pay for prizemoney.
The State Government called for companies to lob a bid in September 2020, with expressions of interest closed in May 2021.
But a leaked email, which was sent this week to companies that had put in bids, revealed that the process had been scrapped.
“The Department wishes to inform you that due to changes in circumstances since the release of the Request, in accordance with Part B, clause 2(b) of the Request, the Department has decided to terminate the EOI Process effective immediately,” the email said.
“The State remains committed to supporting innovation and growth in the Victorian wagering and betting market, while also meeting the State’s responsible gambling principles and ensuring a strong and viable Victorian racing industry.”
The shock decision came after up to 10 companies had spent millions of dollars on bids.
Tabcorp’s 2021 annual report states that it took more than 1 billion bets a year.
Revenue on “wagering and media” in the 2021 financial year was $2.3 billion, with a $216 million profit, up more than 23 per cent.
Tabcorp’s licence was due to run out on August 15, 2024, but the decision means the company will likely get a two-year extension.
Tabcorp is separately in the process of splitting its punting arm from its lottery business.
Racing New South Wales chief executive Peter V’landys raised concerns about that deal in March.
He told The Australian Financial Review that said the industry received “hundreds of millions of dollars” from Tabcorp under a 99-year licence agreement.
Mr V’landys warned that may shrink if the split went ahead and reserved the right to take legal action.
The Department of Justice declined to comment on the cancellation of the expressions of interest.
Meanwhile, Tabcorp confirmed it had hired former Department of Justice Executive Director Joel Williams as a consultant.
Tabcorp said Mr Williams, who left the State Government department in December, was not lobbying for the company.
“Questions relating to the Victorian Wagering Licence process are a matter for the Victorian Government,” a Tabcorp statement said.
“Joel Williams is engaged by our Gaming Services business to provide strategic advice and is not involved in lobbying.”
stephen.drill@news.com.au