Betting giant Tabcorp has begun the sabre-rattling at rival Entain, lodging proceedings in the NSW Supreme Court over a partnership with the AHA threatening its prized retail betting licence in NSW.
Tabcorp (ASX:TAH) has the exclusive licence on retail betting in venues in NSW, in an agreement scheduled to run until 2033. This sees its betting terminals in clubs, its own outlets, and more than 1,000 PubTABs across the state.
UK-listed Entain Group owns bookmaker brands Ladbrokes and Neds, and last month announced a deal struck with the AHA NSW to promote its wares within pubs.
The Association stressed it remained supportive of Tabcorp’s exclusive retail licence, noting that Entain could not install physical wagering facilities, pay commissions to operators or staff, or advertise on the outside of pubs.
Entain chief executive Dean Shannon suggests the way that punters patronise their local and have a flutter with mates has “evolved”.
The news was widely seen as a blow to Tabcorp, which is already facing an influx of competition in Queensland.
The company would not offer comment at the time, and now says it has not been provided enough information by Entain and the AHA to decide exactly what action to take next.
On Monday this week it filed proceedings in the Supreme Court seeking preliminary discovery from the other parties regarding the precise terms of the deal, ahead of potentially taking further action that could result in an injunction or claim for damages.
“We have advised both Entain and AHA NSW that we are concerned that the proposed arrangements with Entain may, depending on all of the facts, raise a risk of contravening the Unlawful Gambling Act 1998 (NSW),” said a statement by Tabcorp.
TAH has been appeasing broken relationships since it spun off its lotteries interest The Lott, in June, and recently announced moves toward making Sky Racing free for pubs and clubs across the country by 2024, which is speculated to cost it up to $50 million in revenue, as it moves to rescue market share.
Entain told PubTIC it cannot speculate on the ongoing proceedings.
“Entain can confirm it has received legal documentation from lawyers acting on behalf of Tabcorp.
“It will take time to assess that documentation and offers no further comment at this stage.”
The AHA echoed the cautious response.
“AHA NSW confirms that it is in receipt of court filing on behalf of Tabcorp.
“AHA NSW is giving full consideration to these matters and has no further comment at this stage.”
Perhaps in spite of its struggles, TAH shares have not suffered from the recent turmoil, closing today at $1.03 – up almost eight per cent since the Entain announcement.