Gillon’s Tabcorp looks to pull down tote windows

Racing clubs across Victoria are bracing for the Gillon McLachlan-led Tabcorp to start shutting down on-course tote facilities at the end of the spring carnival.

In a blow to punters and years of tradition, the gambling giant is looking to cut back face-to-face terminals at tracks in all three racing codes as it strives to keep pace with corporate online rivals such as Sportsbet and Ladbrokes.

Former AFL chief executive Gillon McLachlan is the new Tabcorp boss.Credit: Eamon Gallagher

Smaller race clubs spoken to by this masthead are expecting to be given the option to fund staff at tote windows or lose the service altogether beyond November 30 – an option that greyhound, harness and country gallops tracks say they cannot afford.

Tabcorp’s historic joint venture and profit-sharing partnership with Victorian racing’s three codes finishes on August 15, bringing to an end a number of long-term commercial contracts.

As a result, Tabcorp is no longer obligated to provide minimum services – such as staffed tote windows – at any of the state’s race clubs.

The gambling company is also renegotiating its sponsorship of RSN 927 in a move that could have a significant impact on the day-to-day operations of the industry-owned radio station.

Two sources not authorised to speak publicly said that Tabcorp had withdrawn its $3 million yearly funding, and in its place offered a four-month partnership extension at a reduced rate.

A Tabcorp spokesperson said the company had presented RSN 927 with a revised offer and was waiting on a response.

Racing Victoria acting chief executive officer Aaron Morrison said a revised partnership “may or may not have the exclusivity attached to it that it historically has”.

“Other wagering operators may come into the frame, but that is subject to the ongoing discussions with Tabcorp,” he said.

McLachlan was long touted as the next chairman of an unsettled Racing Victoria board before he withdrew his nomination in June to become the new managing director and chief executive officer of Tabcorp. He officially started in the position on Monday.

Because most recreational punters now bet on their mobile phones, face-to-face on-course operations have long been seen as a loss-making channel for Tabcorp, despite being one of the few options for gamblers to place cash bets.

Tabcorp initially intended to revise on-course operations from August 15, but agreed to extend the deadline until November 30 to allow further negotiations with racing’s three codes.

The developments come as Racing Victoria board looks to appoint a new chief executive officer from one of four candidates as early as Friday.

The candidates are Morrison, former Australian Turf Club head of racing and wagering James Ross, Royal Ascot director of racing and public affairs Nick Smith, and Thoroughbred Breeders Association and Aushorse chief executive Tom Reilly.

Morrison, who is also RV’s chief commercial operator and chief financial officer, has been at the forefront of discussions with Tabcorp and race clubs about life after the joint venture.

“Our clubs are aware that we are in dialogue with Tabcorp regarding a suitable future service model that recognises the significant changes in the wagering market,” Morrison said.

“Ultimately, any future model needs to balance changing customer behaviours and a desire for efficiencies, with a unique opportunity to attract and service on-course customers across all three codes.

Tabcorp has had a strong presence at Victorian racetracks such as Flemington for decades.Credit: Racing Photos / Getty Images

“We are approaching things in the spirit of goodwill to achieve the best outcome for all stakeholders. Tabcorp are working cooperatively with us, and we’ll continue our discussions over the coming months to achieve a sensible outcome that doesn’t undermine Victorian racing.”

In December, Tabcorp announced it had retained the sole rights to operate betting in Victoria’s TABs, pubs and clubs for the next 20 years, in a deal with the Victorian government worth more than $860 million.

For that reason, two sources not authorised to speak publicly told this masthead that Tabcorp would want to maintain its on-course presence at metropolitan tracks as well as big regional race meetings such as the Warrnambool May carnival and Geelong Cup.

But Melbourne Racing Club and Moonee Valley, which have partnerships with corporate bookmakers Sportsbet and Ladbrokes, will have the option to stage race days without oncourse TABs.

Harness racing and greyhound tracks are already looking at reverting to on-course bookmakers as a way for racegoers to have cash bets. Tabcorp’s electronic betting machines no longer accept cash, but only dockets purchased from a TAB operator.

*Melbourne Racing Club is in a state of leadership flux with chairman Matt Cain announcing on Wednesday that he is retiring from the board at the club’s annual general meeting next month.

Cain’s departure follows the resignation of chief executive officer Josh Blanksby, who steps down at the end of this month.

Cain’s resignation will create a vacancy on the MRC committee at a time the club is still working through the future of Sandown racecourse.

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