Tabcorp has today announced a five-year deal with AHA NSW that secures member pubs “enhanced benefits” in line with the changing digital face of punting.
The gaming giant has been under pressure to shore up its relationship with pubs after CrownBet scored a coup with ClubsNSW reportedly worth $300m – the deal paying 1200 club members commissions on future bets made within their venues.
The Tabcorp pub deal sees the AHA NSW’s 1,116 members nominate the company as their exclusive wagering partner, bringing benefits such as its digital commissions model.
This means pubs will be paid commission on bets placed in the venue using the TAB app, the same as cash. They also receive a ‘trailing’ commission on future bets placed by customers that sign up to the TAB app in their venue.
Tabcorp reports NSW pubs account for $1.6bn in annual TAB turnover, and chief executive David Attenborough says it is important they are brought into the changing, mobile nature of punter betting.
“Having a bet in a pub is an Australian social tradition, and this partnership helps us and our venues to deliver the best wagering experience.
“At the same time, we are making sure pubs benefit no matter how customers choose to bet within the venue.”
AHA NSW CEO John Whelan said the Association was “thrilled” to continue its long-standing relationship with Tabcorp, and furthered that the deal would ultimately benefit what pubs can provide their customers.
“We’re particularly excited with the direction Tabcorp is heading with digital wagering in PubTABs and we’re looking forward to the rollout of new hotel products and technology over the next five years.
Tabcorp is understood to be pushing ahead with plans to create an $11bn mega-gaming group with traditional rival, Tatts Group. Tabcorp last month took the proposal to the Australian Competition Tribunal, potentially bypassing the ACCC.
CrownBet, backed by James Packer’s Crown Resorts, has teamed up with Racing Victoria to try to block the Tabcorp-Tatts merger, citing the deal would irrevocably change “the competitive landscape” in Australia.
This collaboration is despite the fact that Racing Victoria is part of a joint venture with Tabcorp, providing broadcast rights and an exclusive retail betting licence in Victoria. RV argues that the merger would end any prospect of a competitive bidding process for the licence when it comes up for renewal in 2025.
Tabcorp’s NSW pubs deal furthers investment into the sector, and a similar wagering deal finalised last month with Community Clubs Victoria.
CrownBet has previously flagged interest in expanding into Queensland, but it was reported Clubs Queensland says it is unlikely to sign with CrownBet.