Tabcorp takes umbrage at offshore operators
Speaking after Tabcorp posted a 63 per cent fall in its annual profit on Friday, chief executive David Attenborough said he would like to see the government ban offshore betting firms from taking bets in Australia.
"An offshore operator should not be allowed to take an Australian resident bet," he told BusinessDay.
"Some countries around the world have dealt with this by just making it illegal for an [offshore] gambling company or operator to take bets from their citizens.
"France has instituted that, so now we don't take any French bets."
Tabcorp's annual profits have slumped on the back of changes to Victoria's poker machine licensing. The changes, which came into effect last August, mean the $2.6 billion spent annually on pokies in Victorian clubs is now split between the state government and the venues.
"The 2013 financial year was the first year of the new wagering and gaming licence structure in Victoria, which we knew would have an impact on Tabcorp's earnings and operations," Mr Attenborough said. "Tabcorp has had a successful year, while managing significant change."
Tabcorp competes with several big international betting players in Australia, such as Bet365, Paddy Power and William Hill. Most of the bigger firms have registered gaming sites in Australia, but others are registered overseas or have both local and offshore accounts.
William Hill, for example, is registered in Australia through Sportingbet and now Tom Waterhouse, but its Gibralta-registered websites are still accessible to Australians.
William Hill chief executive Ralph Topping hit out at Tabcorp on Friday, calling it a "comfortable monopoly". "We are keen to take on comfortable monopolies," he said. "I don't think they have a place in the modern world. Monopolies often mean weak management, weak performance."
However, Mr Topping also backed calls for tighter regulation of offshore gambling. "You have a situation where Australians are betting overseas with underground operations on the internet. That is not good for the consumer."
Tabcorp reported a net profit of $126.6 million for the year to June 30. Its revenue was also down 30 per cent for the period, to $2.1 billion.
While it would not give a guidance for the current financial year, it said poor consumer confidence and weak trading conditions had affected its fourth quarter.
The company also revealed it was making a $18.6 million write-down against the carrying value of its Victorian Keno licence, due to softer trading conditions. Tabcorp shares fell 3 per cent on the results to end the week at $3.27.
Frequently Asked Questions about this Article…
Tabcorp reported a 63% fall in annual profit for the year to June 30, with net profit of $126.6 million. The article says this slump was largely driven by changes to Victoria’s poker machine licensing (the new licence structure split the $2.6 billion spent annually on pokies between the state government and venues) and softer trading conditions, which also hit fourth‑quarter performance.
Tabcorp’s revenue was down about 30% for the period to $2.1 billion. The company’s shares fell roughly 3% on the results, ending the week at $3.27, according to the article.
Tabcorp’s chief executive David Attenborough told BusinessDay he would like the government to ban offshore betting firms from taking bets from Australian residents. He said offshore operators should not be allowed to take an Australian resident’s bet and cited France as an example of a country that has made such activity illegal.
The article names major international competitors including Bet365, Paddy Power and William Hill. It notes that some big firms have registered gaming sites in Australia while others are registered overseas or operate both local and offshore accounts.
William Hill chief executive Ralph Topping called Tabcorp a “comfortable monopoly,” saying monopolies can mean weak management and weak performance. At the same time, he supported calls for tighter regulation of offshore gambling, warning that Australians betting with overseas or “underground” internet operations is not good for consumers.
Yes. Tabcorp disclosed an $18.6 million write‑down against the carrying value of its Victorian Keno licence, which the company attributed to softer trading conditions.
According to the article, Tabcorp would not give guidance for the current financial year. The company said poor consumer confidence and weak trading conditions had affected its fourth quarter.
Everyday investors should note the key points from the article: the impact of Victoria’s new poker machine licence structure on Tabcorp’s earnings, the $18.6 million Keno licence write‑down, weaker consumer confidence and fourth‑quarter trading, and management’s push for tighter rules on offshore betting operators. Also watch competitor actions (for example William Hill’s mixed stance) and any government moves on offshore regulation, as these factors could affect Tabcorp’s future earnings and market reaction.
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