The Australian Hotels Association NSW has entered a major new partnership with one of the world’s largest sports betting groups, Entain, creating competition in Tabcorp’s monopoly market.
Entain Australia is a new AHA NSW top-tier ‘Principal’ partner, alongside only TAB and Keno.
The venture means endorsement by the Association for Entain to promote its digital wagering brands – Ladbrokes and Neds – in NSW pubs.
“For decades now, many NSW hotels have operated PubTABs for Tabcorp at a significant loss – primarily due to high Sky Channel and EBT (betting terminal) fees,” says AHA NSW CEO John Whelan.
“In country NSW it’s even worse, with the majority of country pubs currently running their PubTAB at a loss.”
A new advertising and sponsorship arrangement invites licensed venues in NSW to promote a choice of Entain digital wagering advertising for Ladbrokes or Neds to their patrons, via in-venue displays.
Payment for the promotion will reportedly be determined based on a case-by-case assessment of the venue. The “flexible commercial model” is thought to allow pubs to continue to operate Tabcorp retail wagering.
The agreement specifies that pubs with Entain will not install or operate any physical Entain wagering facilities, nor receive any commission for bets placed. Staff will not operate Entain wagering terminals nor accept bets on behalf of Entain.
The pubs will also not advertise to the general public on the exterior of the hotel, nor do “anything else which may offend Tabcorp’s retail exclusivity” in the state.
Entain Australia CEO Dean Shannon says it’s about offering pubs choice and payment for services.
“Entain recognises the opportunity for us to connect and communicate with the audience inside hotels is valuable and we intend to support the operators of those venues, just as we would any other advertising channel.”
Tabcorp has a 20-year exclusive retail licence in NSW, until 2033.
Whelan stressed AHA NSW remains committed to supporting Tabcorp’s exclusivity in NSW, noting that NSW pubs currently generate around half the national PubTAB turnover. But he concedes that pub patrons embraced non-retail phone wagering a long time ago, with marketing from corporate bookmakers already saturating mass media.
“Increasingly people are choosing to bet on the races or the footy on their phones – not in the traditional retail environment,” he says.
“Today, most people betting on their phone in a NSW pub are placing a bet with Ladbrokes, Neds or another corporate bookmaker.”
The AHA reports around 600 NSW pubs do not carry Sky Channel or TAB wagering, and posture that the Entain partnership could make these more affordable. Entain is also said to be promoting the local ‘pub punters club’ through its Ladbrokes Mates Mode.
London-listed Entain is parent to Entain Australia, which employs more than 750 people across offices in Sydney, Melbourne, Brisbane and Darwin.
The company has a history of growth through acquisition, first named Gala Coral, then BWIN, then Ladbrokes Coral Group, before it was acquired by GVC, launching BetMGM in a joint venture with MGM, before rebranding GVC to Entain.
It now reports its digital wagering market share in Australia at around 20 per cent, behind only Sportsbet, which claims market leadership at around 50 per cent.
The AHA enlists a multi-tiered partnership model, from Bronze through to the top echelon of Principal. Entain is now its Principal Digital Wagering Partner.
But Tabcorp is less relaxed about the impingement on its turf, suggesting the advertising agreement with “a foreign owned bookmaker” would increase gambling advertising in pubs while doing nothing to benefit customers.
The incumbent gaming giant told The Australian is it “disappointed” – particularly given the roughly $50 million it provided NSW pubs in fee relief during the COVID shutdowns.
It seems to be another blow for Tabcorp, after losing its exclusive advertising rights to racetracks in Queensland as part of a settlement around tax changes, and news that the Newscorp-backed BetR is set to launch into the space next week.
Tabcorp has been attempting to lift its digital betting products for punters through initiatives such as its new app.
It remains to be seen how many of the 1000+ NSW pubs with TABs will enter an agreement with Entain.
