Tabcorp’s new betting app panned by initial reviews
Tabcorp’s biggest IT delivery in almost three years – its new TAB betting app – has failed to shine in its first weekend in operation, with reams of complaints pouring into reviews.
Tabcorp’s biggest IT delivery in almost three years – its new TAB betting app – has failed to shine in its first weekend in operation, with reams of complaints pouring into reviews.
The new TAB App was designed to regain market share from more nimble competitors such as Sportsbet and Ladbrokes.
But initial feedback on the app was not positive, judging by reviews from the Apple App Store, which offered a consistent stream of one star reviews and headlines such as “Not Happy”, “Poor”, “New Update Atrocious”, “New App not user friendly” and “Disastrous update”.
The wagering giant is under pressure to remain relevant with digital customers after rejecting a number of takeover approaches last year and instead opting to spin off its lotteries business into a separate company.
The newly appointed Tabcorp chief customer officer Jenni Barnett said her company was very aware it needed to make up lost ground and the app was a vital first step in taking back customers from the online operators.
“We are playing catch-up,” Ms Barnett said. “We’ve frankly been asleep at the wheel for three years at least … and we didn’t have the skill set to respond to disruption.”
Tabcorp launched its highly hyped new App last week, in time to capture Saturday’s AFL Grand Final, the start of the major thoroughbred races for spring and the FIFA World Cup which starts in two months’ time.
The new App is nine seconds faster than the old version, lets customers watch live action and bet at the same time, and now has a same-game multi-product feature.
Ms Barnett said this first iteration of the new App had been about fixing problems behind the scenes.
“The first phase is that we have completely redone the back-end,” she said. “It’s about fixing the absolute basic foundation.”
That may explain why the TAB App still lacks some of the popular features its rivals have, such as being able to bet on tote exotics, or payouts if a horse runs second against a favourite.
A pre-Christmas update will include a social “betting with mates” feature and a same-race multi feature.
Tabcorp should have a massive advantage over its online rivals because it has a $1bn digital business, 4000 bricks and mortar venues, on-course partnerships, and about a million people per week tuning in to its television, radio stations and through its skyracing.com.au website.
But instead, online competitors have been taking market share from the once digitally-clumsy market giant.
The process of applying to register for the former TAB app was so fraught with issues that four out of 10 people ended up not completing the process.
“Some of our digital journeys have been broken,” said Ms Barnett. “When only 60 per cent are getting through the registration process, there is something wrong.”
Last month, Tabcorp said it accounted for about a quarter of the market for digital betting revenue in Australia. That compares to Sportsbet’s parent company Flutter Entertainment, listed in London, which has previously claimed a market share of about 50 per cent in Australia.
Tabcorp, which owns the TAB brand in states and territories outside Western Australia, reported a 4 per cent fall in revenue for 2022 to $2.4bn and a 21.7 per cent decline in EBITDA from continuing operations before significant items of $381.6m.
Shareholders in the company had become increasingly outspoken about management’s inability to adapt to digital disruption before the company decided to separate out its lotteries unit earlier this year.
Now the pressure is mounting for chief executive Adam Rytenskild – who previously ran the wagering business of Tabcorp and was promoted to the top job after the spin-off – to deliver with the new app.
One investor, who declined to be named, said the move to fix the app was a step in the right direction.
Ms Barnett said Tabcorp was now clearly focused on its online product. “We have clear KPIs for the company around digital growth which helps us have clarity and focus,” Ms Barnett said. “The hero metric is to drive digital market share.”
In the past, Tabcorp has been accused of failing to effectively use its media business to cross-sell wagering products. Ms Barnett believes this has been rectified with the new app, which includes a feature that adds Sky Racing and Sports Vision to betting slips.
Rumours had abounded that Tabcorp may consider selling its media unit to fund bids for the WA wagering licence and retain the Victorian one, but Ms Barnett categorically ruled this out.
“We won’t be selling that business. It’s a super-important part of our strategy and ecosystem. We have all these touch points that we have to leverage,” she said.
“We’ve got to get everything working really hard. We have to dial it up and sweat the competitive advantage.”
Chalmers the stock picker makes a bad call
The Future Fund has thrived by having the independence to make its own financial calls. The Treasurer wants to trash this with his own risky bets.
PwC scandal broadens as international partner named
A former PwC Australia partner has named an American heavyweight within the firm allegedly linked to its tax leaks, potentially broadening the scandal to its international offices.