Tabcorp has been awarded the new 20-year Victorian wagering and betting licence by the Victorian government, commencing from August 2024.
The new licence comes without a racing industry joint venture or obligations, ending the current agreement with the Victorian Racing Industry.
Tabcorp said that had the licence terms been applicable in FY23, it estimates the licence would have generated group EBITDA of AU$531m and EBIT of $282m on a pro-forma basis, representing an uplift of $140m and $132m, respectively.
Tabcorp will pay a $600m licence fee to the Victorian government on June 28 before 19 annual payments of $30m to commence in August 2025, with the company planning to use existing debt facilities to fund the 2024 payment.
Tabcorp said the licence will result in a “level playing field in Victoria,” with it paying wagering taxes and racing and sports product fees “on the same basis as other wagering operators.”
Adam Rytenskild, Tabcorp’s managing director and CEO, said the new licence “directly addresses the structural reform required in the modern wagering environment.”
He added: “This announcement continues the strong momentum of our transformation. We are a faster, simpler and more nimble company.
“We’re delivering on what we promise and offering our customers a better experience with faster speed to market and an attractive product offer.
“We are pleased to have worked with the Victorian government on a retail and tote licence that appropriately takes into account the structural changes created by the proliferation of online bookmakers licensed in the Northern Territory.
“This is a strong licence for the modern era and is the prototype moving forward – it ensures a safe wagering ecosystem for the community and incorporates stronger protections to ensure genuine retail exclusivity.”