The gambling group has locked in most of its 3300 pubs and clubs, but several large operators remain unconvinced about the new commercial model and its impact on their bottom line.
Under the shake-up to its retail wagering business announced in May last year, Tabcorp now charges pubs and clubs for its betting terminals and racing channel. In return, venues receive commissions tied to weekly wagering turnover, replacing the previous arrangement.
The company’s retail network now spans 3300 venues, about 400 fewer than under its old agreements. That headline figure includes three major operators that have not actually signed on to the new terms.
Some of the biggest holdouts are Endeavour Group’s ALH Hotels and Laundy Hotels, which have yet to agree to the revamped deals despite a July 1 deadline. Other venues have raised worries about new financial liabilities created by paying for terminals, particularly in an environment of softer discretionary spending.
Several operators also fear the new structure could harm their businesses if wagering turnover does not meet expectations, because their commissions are now directly tied to bet volumes. Those concerns highlight the tension between Tabcorp’s bid to modernise its model and venues’ need for predictable, low-risk income streams.
From Tabcorp’s perspective, the shift is designed to move more risk and cost onto venue partners while better aligning rewards with wagering performance. The company is betting that a commission-based structure will drive higher engagement and turnover across its network, even if some large groups delay signing.
Pub and club operators are focused on understanding how the new economics work through a full trading cycle before committing. That standoff over who carries the financial risk of retail wagering sits at the heart of the ongoing negotiations with major groups.
