Tabcorp Demerger after Court Approves Shareholder Vote

Ben H / 8 April 2022

Tabcorp is one step closer to the demerger of its lottery and keno businesses. The Australian betting provider got the green light from the New South Wales Supreme Court and can now go ahead with a shareholder vote on the subject, scheduled for May 12.

That means Tabcorp shareholders will be able to vote on the demerger of the company’s lottery and keno businesses, opening the door for future bids that would benefit the gaming operator.

Wagering Division Interest

Initially, when Tabcorp first announced its demerger plans back in July last year, the betting provider also hinted that, after the demerger, it might consider bids for its sports wagering division.

That put gaming giants on red alert. Companies like Entain, the owner of Australian bookmakers Ladbrokes and Neds, as well as Betmakers and Apollo Global all expressed their interest and submitted bids for Tabcorp’s wagering arm.

However, after reviewing the bids, Tabcorp decided that it might be in the company’s best interests to keep the betting division, so the suitors gave up.

The Lottery Corporation (TLC) and New Tabcorp

With the NSW Supreme Court approval in place, Tabcorp can now start preparing for the shareholder vote and getting the support it needs. The two new companies that will be created will be called The Lottery Corporation (TLC) and New Tabcorp.

Both of these new business entities will generate returns for Tabcorp shareholders. Moreover, if the right suitor comes, they can also provide a decent income for Tabcorp even though the company abandoned the idea of selling its betting division.

TLC the More Valuable of the Two

 According to Tabcorp Chairman Steven Gregg, TLC will create excellent returns for shareholders. Gregg said that the division has proven its ability to adapt and innovate in a very competitive market. The five strategies that TLC will build on are innovation, growth of retail operations, better user experience, increased market penetration, and new acquisitions.

New Tabcorp will not generate the returns that TLC will, but it will be as valuable to Tabcorp as the lottery business. Just like TLC, New Tabcorp will look to innovate, improve the user experience, as well as be sustainable and efficient.

It is estimated that New Tabcorp will be worth between A$2.1 billion and A$2.71 billion. Advisory firm Grant Samuel values the lottery company much higher, and estimates for TLC’s worth are in the range of A$11 billion to A$11.61 billion. Tabcorp’s current share price is around A$5.4.

The Australian betting and gaming provider expects to go ahead with the demerger of its businesses as soon as shareholders approve it and for all things to be in place by June.

Read more betting news here.

Looking for a new betting site? Check out our reviews of the Best betting sites in Australia.

Take the Quiz to find out which betting site is the best for you.

The verdant surroundings and rustic ambience of Warwick Farm lend a distinct racing charm. While racing takes held on 23 Wednesday afternoons, the Australia Day race meeting in January is the main event. The racecourse is at the centre of a community that ...

The Warrnambool Racecourse is located in the suburb of Warrnambool, in a picturesque valley with great natural viewing platforms. Warrnambool Racecourse is around 260 kilometres from Melbourne’s CBD.

Terang Racing Club, sometimes known as the Flemington of the Bush, has a long and rich history of racing in the southwest. The expansive course was designed by the same person who created the Flemington track. The facilities include a well-kept, vast grandstand with a...

Swan Hill Racecourse is located in the centre of the Murray Region, 340 kilometres from Melbourne.Swan Hill Racecourse June racing festival has earned a name for itself as the best country festival in the state, if not the entire nation. The advice is to book as soon as ...

Sale Racecourse has first-rate facilities, including a wholly climate-controlled Public Bar and Grandstand Bar open on race days.The take pleasure in being a community club that includes our surrounding townships. Because of their family-friendly ambience and specific ...

Ben H
Ben Harris is the Communications Manager for KRUZEY, an AFL expert, and writer. He has one daughter that he loves dearly and four children's books... [Read full bio]

Comments are closed.

Think. Is this a bet you really want to place? Set a deposit limit.

For free and confidential support call 1800 858 858 or visit