Matt Tripp: Tabcorp bidders must support Australian racing industry

Ex-BetEasy CEO Matt Tripp has called on bidders for Tabcorp’s media and wagering division to protect the Australian wagering industry.

Speaking exclusively to EGR, Tripp said: “The first objective should be to ensure that the viability of the industry is protected and enhanced and if that mindset is taken into account by any bidder, I think you’ll position yourself well to be seen more favourably.

“It’s not about buying a business to benefit just shareholders, it is also about ensuring that racing participants of all racing codes who are funded by wagering operators, but particularly Tabcorp, all continue to thrive and continue to grow off the back of Tabcorp growing,” he added.

Tripp distanced himself from Australian media reports linking him with a bid for the operator’s media and wagering arm, but admitted he was keeping a keen eye on the acquisition race.

“I’m just sitting back and watching as it stands at the moment,” Tripp told EGR.

“I’m happy for the bids to come in and see how that plays out before I determine whether or not there is value in the business in terms of making a formal bid myself.

“Of course, I’m interested, but I’m watching with interest as opposed to being as active as some might like to suggest,” he added.

Tripp could front a private equity-led bid for the division, while Entain has been confirmed as a bidder for the business. No bids have been accepted as of yet, with US-based private equity firm Apollo Global Management also thought to be interested.

Reflecting on a potential bidding war, Tripp suggested Tabcorp chairman Steven Gregg, who has been in the role for less than three months, might not accept the highest bidder.

“He’s [Gregg] an excellent operator, very smart and very shrewd and I think, whatever decision is made, he’s not the kind of guy to say, I’m going to take the highest number that is put on the table,” said Tripp.

“He sees himself as a very solid custodian and whoever he empowers to drive this business forward, he will make sure that he backs the right horse to ensure that the viability of the industry is protected.

“That’s first and foremost his aim and his shareholders are his priority.

“He will take a long-term view on this and work out in terms of legacy who the right operator is to steer this business over the next five or 10 years,” Tripp added.

Discussing the future of Tabcorp, Tripp suggested the objective for any successful bidder should not only be the Australian market, but also potential international expansion, claiming this would ultimately benefit the wider industry.

Tripp also tipped Tabcorp to make an international impact long-term if it can regain some of the ground it has lost to operators in the Australian sports betting market, albeit under the right management.

“I think there is an opportunity to consider international expansion in some capacity once they regain some of the ascendancy that they have recently lost in Australia.

“Whether or not that’s through a bid by myself or through someone else, this should be a priority,” he added.