Following Tabcorp’s (TAB) revision of retail wagering, many operators are now reconsidering their position with TAB.
One significant failed relationship with TAB is the Comiskey Group, ending after twenty years.
The Group’s previous agreement expired on 30 June this year, with Tabcorp ceasing its services across all Comiskey venues from 1 July after the group refused to sign a new five-year agreement.
The new agreement offered a markedly different commercial arrangement, including significantly lower commission rates, a sharp increase in weekly venue fees, and a compulsory upfront capital outlay of $15-21k per venue for TAB equipment that remained the property of Tabcorp.
The agreement also shifted a range of regulatory responsibilities and associated liabilities from Tabcorp to the venue operators.
Rob Comiskey, director of Comiskey Group, believed the terms reflected an imbalance in the relationship.
“The new contract would have cost our business hundreds of thousands of dollars each year through higher fees, lower commissions and additional costs,” he says.
“We couldn’t justify signing it because it is both unfair and not commercially sustainable. Hotels have supported TAB for decades, but this deal shifts even more cost and risk onto the venues that actually hold this network together.”
Comiskey believes the agreement’s structure displayed a lack of respect for the role venues play in sustaining Australia’s retail wagering.
“It shows a pretty clear view of how little Tabcorp value the Australian hotel industry,” he said.
Comiskey further stated that venues already bore most operating costs.
“The pubs provide the premises, staff, security, utilities, cash handling and day-to-day operations. Now they’re being asked to fund equipment that remains owned by Tabcorp, while earning less in return. The economics just don’t stack up.
“At some point, that stops being a partnership,” he continued.
The decision affects all the Group’s Queensland portfolio, including Sandstone Point Hotel, Eatons Hill Hotel, The Imperial Hotel Eumundi, Samford Hotel and Dakabin Hotel, along with their two upcoming venues the Aura Hotel on the Sunshine Coast and the Country Club Hotel in Strathpine.
Comiskey said the issue wasn’t isolated but industry-wide and believes the implications would be felt for some time.
“This is a short-term profit play that risks long-term damage to the Queensland racing industry,” he said.
“If you strip viability from the venues that drive turnover and engagement, you inevitably weaken the ecosystem that depends on them.
“They say they’ve consulted with the industry – but by ‘consulted,’ they mean: sign it or be cut off,” he continued.
“Many of us are standing up for our industry and refusing to sign. Others are understandably cautious about the risk of losing patronage without TAB — it’s a David and Goliath situation for many venues. We believe we’re fighting the right fight, standing up for ourselves and our industry peers that can’t.”
He is emphatic that the Group’s relationship with TAB was over.
“To top it off, we were told the $109,000 TAB has owed us for the past two years wouldn’t be released unless we signed the new five-year agreement. We agreed to a co-contribution for upgraded TAB facilities in our venue, yet they’ve withheld those funds as leverage. That’s just poor form.”
The closure of the TAB facilities will not affect the Group’s broader venue operations. Existing offerings including food and beverage services, gaming machines, Keno, and live entertainment will continue to operate as usual, and the end of the relationship has garnered an overwhelmingly positive response on social media.
The Group will undertake an assessment of potential new uses for the areas previously occupied by TAB facilities, with the aim of identifying alternative entertainment opportunities across its venue portfolio.
“We’re disappointed it has come to this because it will inconvenience some of our loyal customers,” Comiskey laments.
“But our responsibility is to ensure every part of the venue stacks up commercially and delivers value for guests. Quite frankly, this deal is un-Australian and not something we can support.”
