Tabcorp and Entain, two bitter Australian market rivals, are taking their rivalry to a new arena – Australian courts. Tabcorp is claiming that Entain failed to provide “sufficient” information about the New South Wales advertising campaign it launched with the Australian Hotels Association (AHA).
Tabcorp wrote to both NSW pubs and Entain and informed them that it was concerned that the campaign the Ladbrokes and Neds owner launched might breach the Unlawful Gambling Act of 1998.
Entain Tailored Deal Not to Violate Tabcorp’s Exclusivity Agreement
Australian wagering giant Tabcorp has the exclusive rights to offer retail betting in NSW pubs until 2033. Tabcorp and Australian pubs and clubs extended the exclusivity agreement in 2013.
Entain, of course, knew about the NSW pubs and clubs concession given to Tabcorp. So, it tailored its NSW advertising deal so that it is not in breach of Tabcorp’s retail wagering license or the betting company’s exclusive rights to organize land-based wagering.
Under the NSW deal, Entain can advertise its Ladbrokes and Neds brands in Australian pubs and clubs withoutinterfering with or breaching Tabcorp’s exclusivity deal.
Tabcorp Claims Entain Failed to Disclose Information
However, Tabcorp disagrees and says Entain should have provided more information about its advertisement campaign, and that the London-listed company failed to disclose “sufficient” information regarding the deal.
When Entain and AHA signed the NSW deal, a person with ties to Racing NSW said that Tabcorp got what it deserved as it was trying to turn Australia into a monopolistic market it would dominate. The source also told the Sydney Morning Herald that Racing NSW was closely following the situation.
Entain and AHA confirmed that Tabcorp sent them legal documents. However, they are yet to comment on the matter.