Tabcorp attacks rivals over advertising, tax
Australia’s largest bookmaker, Tabcorp, has called for less gambling advertising, which it argues is harmful to the community, and delivered its annual attack on international betting operators for paying minimal tax.
Tabcorp’s business, which includes horse racing, sports wagering, Keno and a substantial media unit, remains the market leader in Australia but in the last few years a host of overseas rivals including the UK’s Paddy Power and William Hill have eaten into its market share.
Both British bookmakers are registered in the Northern Territory where online betting firms enjoy a low tax rate. Tabcorp also has a subsidiary, Luxbet, which operates in the NT under the same conditions.
Tabcorp chairman Paula Dwyer told investors at its annual general meeting there should be a fairer structure for the payment of taxes across the industry noting Northern Territory betting companies paid $6 million in wagering taxes in the 2014 financial year despite earning $8.5 billion in turnover.
“On the same turnover, Tabcorp would have paid $170 million back to government. That’s 28 times more. The question therefore has to be asked: why is the community getting so little out of the Northern Territory-licensed corporate bookmakers?,” Ms Dwyer asked.
Companies including Paddy Power, which operates Sportsbet, William Hill and Bet 365 have shaken the market by aggressively targeting customers including those of Tabcorp with a range of offers and inducements to lure punters onto their books.
Sportsbet’s success in the market led it to state it had overtaken Tabcorp as Australia’s biggest online wagering operator, a claim quickly refuted by Tabcorp.
Ms Dwyer also said the 34 per cent jump in wagering advertising in the last year to $89 million was a cause for concern.
“Our concern is not only that advertising is regulated differently in every state and territory,” she said. “We also share the community’s view that there is too much gambling advertising.”
Former NSW premier Barry O’Farrell is leading a federal government review of the Interactive Gambling Act examining the size and economic effects of illegal overseas wagering along with international regulatory regimes that could provide a template for Australia.
Ms Dwyer said the government needs to clamp down on the estimated 2500 unlicensed wagering operators taking bets from Australian punters.
“We believe wagering operators should be licensed in Australia if they are to take bets from Australian residents. This would largely address the problem of unlicensed offshore operators, whose activities pose a threat to racing and sports integrity.”
Tabcorp on Thursday also said it had lifted its first quarter 2016 revenues by 1.1 per cent to $543.5 million from the same period a year ago due to growth in its wagering business powered by its digital unit.
Chief executive David Attenborough said he expects to deliver on its target for a 14 per cent return on invested capital by fiscal 2017.
