Tabcorp interested in NZ TAB takeover
Tabcorp one of several operators keen on deal for TAB if NZ government backs decision to outsource operations
Tabcorp is one of several Australian wagering giants interested in taking over the TAB’s role in New Zealand, according to local news reports.
New Zealand racing minister Winston Peters commissioned a report into New Zealand’s struggling horse racing industry in July, which concluded that operations should be outsourced to an Australian firm to improve the product, upgrade technology, improve customer service and increase revenues.
It read: “It is a fact that New Zealanders are not the avid gamblers that are seen in their closest neighbour Australia (wagering per capita in Australia is NZ$225 and in New Zealand is NZ$92 per annum).
“This denies the New Zealand TAB the scale required to compete with global wagering operators.
“A solution which I favour in this regard is for the commercial activities of the TAB to be outsourced on advantageous terms to a suitable major wagering operator enabling the TAB to improve its product offerings, upgrade technology, improve customer service etc.
“This process should drive cost savings and incremental revenue, and offer New Zealand customers a compelling global product.”
The TAB turns over more than a billion New Zealand dollars in race bets (£250m) and returns a total of about NZ$150m (£75m) annually to racing bodies including gallops, harness racing and greyhounds.
EGR Intel understands that Tabcorp is one interested operator, with the bid winner reportedly set to give the industry an up-front cash payment as well as recurring fees more money, said to be NZ$100m over 25 years.
The TAB currently owns Trackside TV which broadcasts race meetings and race shows but a potential takeover would see the successful party take full control of broadcasting rights and race timings.