Australian gaming operator Tabcorp has seen a retail exclusivity within one of its home states receive an tentative extension agreement, pending approval by the Independent Gambling Authority.
Operating through its wholly owned subsidiary ‘UBET SA Pty Ltd,’ the retail wagering license with South Australia is now set to be exclusive until the end of 2032, after its new arrangements are granted.
UBET, which offers retail wagering in South Australia across approximately 350 agencies, licensed venues and racetrack, states that the terms of the newly arranged licence remain unchanged, except for a new annual fee covering the period.
In addition the ASX listed gambling group also details that it has secured racetrack signage and wagering partner exclusivity for all three codes of racing, which it believes will have an Earning Before Interest and Tax (EBIT) impact of around $2m.
David Attenborough, Tabcorp Managing Director and CEO, explained: “We are pleased to have extended retail exclusivity for wagering in South Australia and look forward to continuing to work with the Government, our venue partners and South Australian racing on supporting a vibrant racing and wagering industry.”
Tabcorp, who completed the long proposed $11bn merger with Tatts Group in December of last year, recently published its half year results for the period ending 31 December, with a profit decline aligned in part to the combination.
Reporting a 58% drop in profits to $26.4 million, the firm pointed to $57 million in ‘one-off’ costs during the period, in addition to highlighting the closure of Odyssey Gaming Services and Luxbet when discussing further costs.
Tabcorp details that it now operates wagering products in approximately 4,300 retail venues, on-course at race tracks, online, via mobile devices and through call centres, in South Australia, New South Wales, Victoria, Queensland, Tasmania, Australian Capital Territory and Northern Territory.