Gillon McLachlan, former AFL boss, appointed CEO of Tabcorp
Gillon McLachlan has made his next big career move after stepping down from the AFL – and for some, it’s difficult to swallow.
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Former AFL boss Gillon McLachlan has been appointed CEO of the gambling giant Tabcorp, which owns TAB and Sky Racing.
McLachlan, 51, who was the AFL’s CEO from 2014 to 2023, will be Tabcorp’s new managing director and chief executive officer. He starts on August 5, pending regulatory approval.
The job will earn him a base salary of $1.5 million, before any bonuses are added.
The announcement, on Monday, came after McLachlan pulled out of the running to become chairman of Racing Victoria last week. He’d been the frontrunner for that role.
Former Tabcorp boss Adam Rytenskild, resigned back in March after an investigation into allegations that he used sexually inappropriate language in reference to a female regulatory official.
“I do not recall making the alleged comment, and it’s not language I would usually use, but I have regrettably agreed to resign,” Rytenskild said at the time.
Bruce Akhurst, Tabcorp’s executive chairman, said McLachlan needed “no introduction”.
“He is recognised as one of Australia’s leading CEOs, and securing Gill is a great vote of confidence for Tabcorp’s future,” Akhurst said.
“We’ve laid strong foundations, and Gill brings a growth mindset and the capability to capitalise on the opportunities ahead of us.”
“Gill has a deep understanding of sport, racing and wagering, combined with significant acumen, which was highlighted in the substantial growth of AFL revenues under his leadership.
“Importantly for us, Gill brings an added dimension of having been responsible for some of the most significant media rights deals in Australian sports history and we’re excited about the potential growth opportunities for our wagering and media business under his leadership.”
In a statement, McLachlan himself said the challenges associated with growing Tabcorp were “appealing” to him.
“It’s about creating entertainment for our customers in a safe way and providing a unique customer omni-channel entertainment offering across digital, retail and the media business,” the former AFL boss said.
“Tabcorp is a proudly Australian company that contributed $1.1 billion to the racing industry last year and continues to be one of the racing industry’s biggest partners, as well as the wagering licensee in all states except for WA.
“This is a really important component of my decision. There are enormous opportunities ahead and I’m looking forward to driving the sport category, among other things.
“Tabcorp is partway through its transformation journey and I’m looking forward to working with the leadership team to accelerate and deliver on the growth opportunities.”
Racing Victoria’s interim CEO, Aaron Morrison, congratulated Tabcorp on the appointment.
“We look forward to working closely with Gill McLachlan,” said Morrison.
“Whilst our historic joint venture is soon to come to an end, Tabcorp remains an important wagering, commercial and media partner for Victorian racing.
“Gill has a great understanding and appreciation of Victorian racing and we see this as beneficial as we continue to work with Tabcorp on a range of important matters.”
Significant challenges ahead
Since Rytenskild stepped aside earlier this year, Tabcorp’s share price has plummeted from 79 cents to 59 cents, and meanwhile its market capitalisation has fallen below $1 billion for the first time ever. Arresting that slide will be high on McLachlan’s agenda.
Another challenge: the gambling industry’s reputation. And the increasingly common perception that it is too closely associated with Australia’s sport codes.
When he was still the AFL boss back in April of 2023, McLachlan told a parliamentary inquiry into online gambling that cutting the footy code’s ties to online betting would cause irreversible financial damage.
McLachlan told the inquiry that, while he acknowledged the risks of harm caused by gambling, “over-regulating” betting ads or restricting gambling sponsorship deals would compromise the AFL.
He disputed an assertion from Labor MP and committee chair Peta Murphy that the AFL would be able to find other sponsors to replace betting companies if it had to.
“I don’t take that premise as being as being real. I understand the theory of it,” McLachlan said at the time.
He argued that cutting ties with gambling sponsors would result in a funding shortfall, which would amount to an almost entire net financial loss, because betting companies couldn’t easily be replaced from other sponsorship categories.
McLachlan reiterated his opposition to banning gambling ads in Australia altogether – even when confronted with findings that almost two-thirds of Australians thought the AFL should receive no money from the industry.
He argued that a total ban would drive the betting industry “offshore and underground” and make it even harder to regulate.
“If you want my specific views, I don’t believe the brand advertising is too much. I think the inducements are a problem,” McLachlan told the inquiry.
“I think this broad discussion needs to be nuanced.
“That’s why if you look at what we did proactively, there is brand advertising restricted to advertisers at venues but there are not inducements.”
Gambling inducements incentivise punters to keep betting through free bets or money back offers, and are usually already subject to strict regulations.
The inquiry heard evidence about a wide range of gambling harms beyond the immediate financial consequences, including psychological and physical damage and the negative effect problem betting could have on relationships and families.
McLachlan’s smooth transition from boss of the country’s largest footy code to CEO of a gambling company will, to put it lightly, not soothe existing concerns.
– with NCA NewsWire
Originally published as Gillon McLachlan, former AFL boss, appointed CEO of Tabcorp
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