Tabcorp in $33m Dabble deal

The wagering company has confirmed it will take a stake in the social betting business in a transaction first flagged by The Australian last week.

Tabcorp chief executive Adam Rytenskild. Picture: Paul Jeffers

Tabcorp says it will invest $33m to take a strategic investment in social betting business Dabble, likely taking a seat on the company’s board.

Under the agreement, first reported by The Australian last week, Tabcorp will take a 20 per cent stake in Dabble subject to approval by the Northern Territory Racing Commission.

In a statement, Tabcorp said the investment provided the company with “exposure to Dabble’s innovative product capability and strength in the younger customer segment”.

“We are transforming our company, with a clear strategy and united ambition to grow digital market share,” said Tabcorp chief executive Adam Rytenskild. “Dabble is one of the most unique and innovative wagering brands and our investment today fits perfectly with our transformation agenda. Our stake in Dabble will give us exposure to innovative product capability and ultimately to a younger customer base.”

Mr Rytenskild said the company’s new TAB app was also delivering positive results, with an 11 per cent increase in weekly active customers compared to the six weeks prior.

A pre-Christmas update of the new TAB app is expected to include a social “betting with mates” feature.

“TAB is synonymous with punting in Australia and our brands will complement each other so that Dabble can continue to expand its evolutionary social betting experience to more punters,” said Dabble chief executive Tom Rundle, a former Pointsbet executive and head of product at CrownBet.

Founded in 2020, Dabble is among one of the fastest growing wagering brands in Australia, with over 150,000 customers and June 2022 quarter annualised revenue of $47m.

In a recent note to clients, Taylor Collison analyst Andrew Orbach said the Dabble app was one of the most downloaded in August and early September outside of big-name groups like Sportsbet, Ladbrokes and Tabcorp.

Mr Orbach estimated that smaller companies like Dabble made up about 11 per cent of betting app downloads, with Dabble accounting for about 79 per cent of the 21,000 downloads in its category in August. “We continue to see this segment of the market growing over the next 24 months,” Mr Orbach said.

Former Collingwood AFL footballer Heath Shaw is a Dabble investor, documents filed with the corporate regulator show.