Tabcorp And Crown Locked In Digital Business Battle

By Brian Cullingworth, Last updated Apr 14, 2017

Tabcorp set to announce new five-year deal with New South Wales pubs to counter CrownBet digital betting services to clubs

The business rivalry between the Tabcorp and Crown gambling groups in Australia is set to rise with the expected announcement today of a new Tabcorp agreement to provide wagering services to New South Wales pubs.

The imminent announcement is being seen as Tabcorp’s response to a A$300 million deal in February that enables CrownBet to provide digital betting services to some 1,200 NSW clubs.

CrownBet provides Wi-Fi and encourages club customers to bet using the company’s wagering app and it has also started to roll out ”cash in, cash out” machines that allow punters to collect their money on winning bets.

Adding to the tension, Crown has partnered with Racing Victoria to oppose the proposed merger of Tabcorp and Tatts (see previous InfoPowa reports).

In today’s announcement, Tabcorp chief exec David Attenborough is expected to detail a five-year agreement with Australian Hotels Association NSW for a wagering partnership with pubs.

There are 1116 AHA members across the state, and under the deal the pubs will receive a commission from the bets placed at their venues on the TAB digital app. The rate is the same as when bets are placed in cash.

Attenborough argues that it is important that hotels receive revenue to reflect the changing nature of the way punters place bets. “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,” Attenborough said.

AHA NSW chief executive John Whelan said wagering turnover through the state’s hotels remained strong, and the Tabcorp deal would give pub customers flexibility to place bets.

“You can’t beat an afternoon at your local pub with friends having a few bets,” Whelan said. “It’s a unique Australian tradition. This partnership will allow us to provide punters an even better pub wagering experience.”

---