Tabcorp Announced as a Likely Buyer for TAB
TAB is a government-run betting operations company in the Western Australia territory. There has been an announcement made by WA government that they will be privatising TAB and its assets. This is because the value of the company is declining and the company is using its cash reserve to finance its operations.
The Australian betting giant, Tabcorp, has been announced as the likely company to take over TAB operations. Tabcorp has the biggest chance to win the bidding because they currently have a much higher market reach. Especially since they merged with Tatts Group last year.
Tabcorp is not the only betting operator interested in bidding. Other brands include Ladbrokes Australia, BetEasy and SportsBet.
Western Australian Advised to Privatise TAB
Investec is the financial services company that acts as the advisor of WA for the TAB brand. They have advised that it will save the betting company from losing revenue if they privatise the company. The investment company has also urged the government that the relevance of the company is also diminishing because punters are choosing to bet with national betting companies.
In the past years, the Western Australia government had reported that the betting operator is worth AU$1 billion. However, the amount has dropped to AU$500 million. This is the possible amount that TAB could be sold for. Ben Wyatt, the State Treasurer, announced that the bidding process would begin in 2019 and from the sale, 35% will be allocated to the local racing industry.
Other Plans by the Western Australia Government
Other than announcing the privatisation of TAB, WA government has also announced that they will be introducing a point of consumption tax (POCT). The 15% tax will be on online betting companies who are out-of-state. 30% of the money that comes from POCT will be allocated to the local racing industry. The tax will be introduced starting 1 January 2019.