Report: Tabcorp launches legal challenge against Entain over NSW advertising contract

Tabcorp has commenced legal proceedings against Entain and the Australian Hotels Association’s New South Wales (NSW) division in the Supreme Court late on Monday, according to the Sydney Morning Herald.

The proceedings claim to be over the companies’ alleged failure to disclose “sufficient” information about its advertising deal in the state.

Tabcorp also wrote to both parties with concerns that its deal may raise the risk of contravening the Unlawful Gambling Act of 1998.

In NSW, pubs and clubs are exclusively allowed to operate Tabcorp’s retail wagering in venues due to a state licence extended in 2013 to last until 2033.

Last month, Entain signed a deal with NSW hotels that will allow pubs to advertise the online platforms of Ladbrokes and Neds without infringing on the exclusivity agreement with Tabcorp.

Tabcorp has since alleged that Entain and the NSW Hotels Association needed to provide more information on the deal, which meant the operator could not decide whether the deal infringed on the exclusivity agreement.

According to the Sydney Morning Herald, Entain and the NSW Hotels Association confirmed they have received legal documents but offered no further comment to the publication.

When the deal was signed, the Sydney Morning Herald reported that a source close to Racing NSW told the publication Tabcorp got what it deserved after “behaving like monopolistic arseholes”, adding that Racing NSW will be watching how the deal plays out.

Racing NSW recently settled an ongoing dispute with Tabcorp over the A$11bn split of its wagering and lotteries division.

Elsewhere, earlier this month, Entain confirmed that it would pull its sponsorship of Australian sports teams as the operator signals a regional strategy shift. This move follows Entain-owned Ladbrokes’ move to pull its A$7.5m sponsorship of NRL side Brisbane Broncos in July.