Tabcorp Will Benefit from Future Gambling Reforms but Will CrownBets Provide the Much-Needed Edge?

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Tabcorp Will Benefit from Future Gambling Reforms but Will CrownBets Provide the Much-Needed Edge?

Although most online poker players are not happy with the concept of the forecasted gambling reforms, the bookies are revelling the prospect. One such bookie being Tabcorp, or so an analyst reports.

In the near future, the Interactive Gambling Amendment Bill will be passed. This bill, will in effect ban the following: online poker, casino gaming, as well as in-play betting. Leaving Tabcorp smiling as they too, do not offer any of the above services.

Sacha Krein of CLSA is the author of an extensive report on Australia’s betting sector. Krein stated that the changes implemented by Turnbull’s government will, in the long-term, rock the scales in favour of Tabcorp over that of corporate bookies.

Tabcorp logo Australia

Why is Consumption Tax Necessary?

National point of consumption taxes such as advertising restrictions and credit card bans are said to be implemented within the next few years, according to Krein. Should these consumption taxes come into play, Tabcorp will be given the upper hand as competition from abroad is restricted. This will ultimately position Tabcorp optimally as it will benefit its merger with Tatts. Krein expects that this merger will most likely advance.

When deregulation invited competition from online bookies, largely from the UK, in 2008, Tabcorp could no longer continue in its monopolistic wagering. Along with this came technological disruption namely in the form of mobile in-play betting facilities, which gave players the advantage.

However, the tables now seem to be turning. There is a national point of consumption that is being considered by the Treasury. This means that a tax percentage will be forced, on all betting companies, on all bets taken by players residing in a particular state. Which will be implemented instead of paying a simple percentage of the gross gaming revenue to the state in which all of their operations are based.

Thus, making it costly for a corporate bookie to operate within Australia which will in essence render competition and innovation null and void, with players having to pick up the cost. With this in place, the bottom line of corporate betting companies will take a hard knock resulting in bonuses and promotions that are far less generous, as well as the odds for the player being a lot lower.

Crownbets logo Australia

Disruption Must Continue from CrownBets

According to Sacha Krein, there is still one company native to Australia, that has the power to keep Tabcorp on its toes, regarding competition and that is CrownBets

The digital sphere of Crown Resorts, CrownBets, upon securing a ten-year deal with ClubNSW which provided an app for players across 1200 of ClubNSW’s venues to bet online.

In retaliation to this, Tabcorp signed its own new five-year deal with the Australian Hotels Association (AHA) agreeing to exclusively offer its services to approximately 1116 pubs throughout the state.

What this means is that for the first time, through Tabcorps smartphone app, hotels will be gaining commissions through all bets placed by customers inside the venue, not only from bets placed over the counter.

CrownBets is providing Tabcorp with homegrown competition that is keeping them on edge. The competition that comes along with CrownBets is essential as the government is said to be phasing out foreign online bookmakers in years to come.

 

By | 2018-04-04T09:39:34+00:00 April 18th, 2017|Blog Posts|Comments Off on Tabcorp Will Benefit from Future Gambling Reforms but Will CrownBets Provide the Much-Needed Edge?

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