The company will invest over $130 million to revitalise pubs and clubs as it attempts to regain market share lost to international digital bookmakers. The plan offers commissions and reward incentives for venues, although new costs and rental fees have raised concerns about long-term profitability for operators.
As Australia’s leading wagering operator, Tabcorp is moving its focus away from pure digital competition and is instead concentrating on reinforcing its presence in pubs, clubs and licensed venues. The initiative includes upgraded self-service betting terminals, bonus bets for punters and in-app live betting options available within venues. Executives believe the investment will help drive more foot traffic and encourage in-person betting, especially among younger customers.
Briefings provided to venue partners outline an $80 million spend across five years to upgrade gambling terminals, with another $50 million allocated to promote in-venue activity. This includes bonus bets, sports merchandise and access to exclusive events. Venues with annual turnover of more than $10.4 million could receive over $360,000 in commissions under the new model. Those in lower tiers will also see gains through early performance-based incentives. However, Tabcorp will begin charging weekly machine rental fees of up to $550, replacing its existing fee-free model.
This renewed focus on physical betting locations comes as digital-only platforms like Sportsbet and Ladbrokes continue to erode Tabcorp’s online customer base. While the company previously aimed to achieve a 30% share of the digital betting market by 2025, it is now leveraging its near-monopoly in traditional venues, which still make up around 42% of total turnover. A recent test of mobile in-play betting in select pubs has shown potential for future developments, though these will depend on regulatory approval in states such as New South Wales.
Early results suggest the strategy is gaining traction. Venues that partnered with Tabcorp during events like the spring racing carnival reported turnover increases of up to 42% on major race days. Tabcorp also recorded an 11.8% rise in revenue to $2.6 billion for the financial year ending 30 June, with its share price climbing more than 62% since January.
New agreements are set to roll out from 11 December, with a full launch scheduled for 1 July. Whether these efforts will lead to lasting growth or create tension between Tabcorp and venue partners remains to be seen.
