Radical shake-up of Vic’s betting licences

A major shake-up of Victoria’s $5bn wagering sector could see Tabcorp lose its monopoly, with multiple licences potentially awarded.

The radical overhaul of Victoria’s punting industry could see multiple licences dished out. Picture: Getty Images

A radical shake-up of Victoria’s lucrative wagering sector could see multiple companies secure licences to run betting shops and on-course punting for up to 20 years.

Licences for the $5bn market are back up for grabs, after a process opened in 2020 was shelved earlier this year by the Andrews Government.

The government has now put forward two options for a new licence scheme, which is currently a Tabcorp monopoly until 2024.

A new expressions of interest process says companies could vie for a single exclusive licence that lasts 10 or 20 years, or up to three licences – again for either 10 or 20 years.

A successful bidder or bidders would be authorised to take bets on horse racing, AFL events and other events based on fixed odds or on a Totalisator – including via the phone or online.

In tender documents, the Department of Justice says it is also open to an “alternative licence model” that could see more options added to the present system.

A previous plan to sell a long-term licence was shelved earlier this year, with sources saying the government wanted more competitive bids and extra revenue.

A government spokeswoman said it was looking for an option that would provide “the most value to the state”.

Successful bidders would be able to take bets on horse racing, and other sporting events, including via the phone or online. Picture: iStock

She said there had been “changes in circumstances and the market since the release of the original EOI request in 2020” meant that a new process had begun.

“The Department of Justice and Community Safety has commenced a new EOI process, which closes in August,” she said.

“Organisations are being invited to submit an expression of interest (EOI) in the wagering and betting licence to give Government an opportunity to understand which licence options will provide the most value to the state.

“EOIs will be assessed against the licensing process objectives, including maximising value while minimising harm. This assessment will inform the Government’s decisions about key parameters for the new licence, such as licence term and number.”

The total betting and wagering licence saw a whopping $4.9bn turned over in 2020-21, despite the impact of the pandemic, pouring millions into government coffers via taxes.

About $200m a year also goes towards the three racing codes – harness, greyhound and thoroughbred – from the revenue generated.

In the last available year of data, about $1.1bn of turnover was on “retail” – which is hotels and clubs and betting shops.

A whopping $3.8bn is now from phone and internet gambling.