In a sign of the times, Tabcorp is revolutionising its offering, looking to allow pub and club patrons to place in-play bets on live sport through the Tabcorp app.
The introduction of digital in-play betting within venues is a first in Australia. Tabcorp was able to secure regulatory approval in NSW due to its retail licence.
An initial trial of the system, to be known as tap-in-play, is scheduled to begin in two pubs on Thursday, at Cheers Sports Bar and Grill Sydney and Canterbury-Hurlstone Park RSL, in Hurlstone Park. The aim is to expand into 20 venues in coming weeks.
The company has around 3,700 pubs and clubs under retail licence agreements in all mainland states bar Western Australia, plus the Northern Territory.
The trial is to assess the viability of a national rollout.
Until now, to make bets on live sporting events punters had to talk to a TAB operator or the call centre, or use a self-service terminal.
This system will require people to tap their phone on a terminal or in-venue ‘puck’ to place in-play bets. It is anticipated that the system might evolve to offer venue- or team-specific incentives.
It is not intended to replace existing in-venue electronic betting terminals.
Tabcorp pays millions to sustain its retail licences, and circa 42 per cent of its turnover comes through retail venues.
Currently only four per cent of its turnover is derived from in-play betting, versus a whopping 54 per cent generated through this method in the USA.
It’s understood that younger punters are far more likely to want to use their smartphone rather than Tabcorp’s retail network. This has played into the strengths of its major rivals, foreign-owned companies Sportsbet and Entain, which operates Ladbrokes.
Tabcorp has been looking to bolster its diminishing market share and CEO Gillon McLachlan outlined the new plans at the recent Macquarie Australia Conference for investors. His presentation included moves to push Sky Racing into overseas markets and promote it through the retail outlets.
McLachlan proffered that the betting giant does not need to own the rights to the AFL or NRL as it can reach punters through their phones.
Describing it as the “future of wagering” he says the “friction” has been removed and expects revenue through venues to increase.
“There’s a heavy level of interest from all the retail outlets,” he told the Conference.
Appointed in August 2024, McLachlan has copped flack for his efforts, which have involved cutting a lot of jobs – more this week bringing the total to around 300 – and curating an executive team to help support the company in flux.
“In an increasingly regulated world, with a great partnership we can think about changing structural economics and the way people think about retail,” he bodes.
The in-play system runs contrary to plans being considered by the Federal government to ban gambling advertising during or near live sports events, however this initiative was put on hold due to the election.
Tabcorp has reported an impressive 11 per cent increase in revenue, to $1.3 billion, and 26 per cent lift in profit for the first half of FY25, which it mostly attributes to its new Victorian betting licence.
This and the latest announcement saw its share price (ASX:TAH) rally this week, climbing 18 per cent to close today at 67 cents.
