Add articles to your saved list and come back to them any time.<\/p>\n
Tabcorp has officially won sole rights to the Victorian wagering licence for the next 20 years in a deal that ends its long bidding war with Sportsbet.<\/p>\n
Tabcorp has held the licence since 1994 and confirmed to the ASX on Monday that the Victorian government has committed to a new deal which will replace its existing arrangement, which was due to expire next August.<\/p>\n
<\/p>\n
Tabcorp chief executive Adam Rytenskild has secured a deal which will result in Tabcorp holding the Victorian wagering licence for the next 20 years. <\/span>Credit: <\/span>Eddie Jim<\/cite><\/p>\n Under the arrangement, Tabcorp will pay an upfront payment of $600 million in June and $30 million in annual fixed payments from 2025 to 2043, which would take the payment to $1.1 billion. Tabcorp said the payments are not linked to inflation, so the value is actually $864 million.<\/p>\n The $864 million deal is higher than JPMorgan\u2019s prior valuation of between $750 million and $800 million.<\/p>\n Tabcorp chief executive Adam Rytenskild said the terms of the deal recognised the structural changes to wagering brought on by online bookmaking.<\/p>\n \u201cThis is a strong licence for the modern era and it\u2019s the prototype moving forward\u2013 it ensures a safe wagering ecosystem for the community and incorporates stronger protections to ensure genuine retail exclusivity,\u201d Rytenskild said.<\/p>\n Sportsbet had originally placed a bid which sought to split the licence between multiple bookmakers, before Tabcorp increased its offer. If Sportsbet had been successful, Tabcorp and Sportsbet would both operate betting shops in Victoria.<\/p>\n Tabcorp said the sole rights would have boosted its 2023 earnings before interest, tax, depreciation and amortisation by $140 million if finalised within the period.<\/p>\n Tabcorp\u2019s existing deal with the Victorian government was finalised in 2011 when it paid $410 million in an upfront fee to exclusively operate retail outlets and TABs in pubs and clubs.<\/p>\n Victoria recently increased its point-of-consumption tax to 15 per cent to match NSW, WA, SA and Tasmania. This was hailed as a win for Tabcorp\u2013 which has long called for the levelling of taxes it and corporate bookmakers pay\u2013 and the state racing industry.<\/p>\n