Tabcorp, a leading Australian gambling company based in Melbourne, saw its shares soar to record levels on December 18 after securing a 20-year betting and wagering license in the State of Victoria. The company is set to pay an indicative value of A$864 million for the license, with the share price jumping 24.8% in response to the news.
Furthermore, Tabcorp will pay a fee of A$600 million to the Victorian State Government in June next year, as well as nineteen yearly payments of A$30 million starting from August 16, 2025. The company’s CEO and Managing Director, Adam Rytenskild, expressed that this agreement will put Tabcorp on a level playing field with its competitors in Victoria for the first time.
The bidding war for the license involved Sportsbet, with initial reports suggesting that they had outbid Tabcorp in a bid to share the license. However, analysts at Jefferies see the exclusive license as a positive outcome for Tabcorp, predicting an increase in yearly earnings and easing investor uncertainty. Tabcorp had previously entered an existing contract with the Victorian State Government in 2011, paying an upfront fee of A$410 million for the exclusive management of club and pub retail outlets.
In other news, Tabcorp has appointed Mark Howell from Coles Group as its next CFO, adding to the company’s recent developments.
The successful acquisition of the 20-year betting and wagering license has positioned Tabcorp for significant growth and opportunities in the Australian gambling market. The company’s shares have surged, indicating a positive response from investors and industry analysts. Tabcorp’s future looks promising as it moves forward with its ambitious plans for expansion and development.