Tabcorp is losing battles with corporate bookies left and right, but the Australian wagering giant is yet to concede defeat in the war. According to Tabcorp’s 2022 annual report, the company that supports racing in Australia returned only $946.5 million to the racing industry.
That means Tabcorp funneled $90 million less to the three codes of racing than it did in 2021 when it supported the industry with $1.036 billion. Tabcorp’s wagering revenue is now $1.73 billion, down from $1.96 billion last year – a 12% decrease. However, the company isn’t giving up.
A New Customer-Focused Strategy
In its strategic update to investors, Tabcorp is optimistic about what the next 12 months will bring. The company said that it would focus on growing its customer base and creating more of the products its players love.
Tabcorp also hinted at “a new customer-focused strategy” stemming from the company’s “unique combination of digital, retail, and media assets.”
Calling for a Tax Hike
But Tabcorp is focusing on more than just enticing new customers. The wagering giant has spent a lot of money telling authorities that international bookmakers such as Sportsbet, Ladbrokes, and Neds need to pay higher taxes.
The company launched a large media campaign via the Aussie Fair Play Coalition claiming they paid double the tax rate of foreign-owned betting operators.
Foreign-Owned Bookies Pay Almost as Much as Tabcorp
However, Responsible Wagering Australia (RWA) chief Justin Madden disagreed and said Tabcorp’s claims were misleading. Madden was adamant that Tabcorp did not pay twice what other bookies did and had the numbers to prove it.
The RWA CEO claimed that Tabcorp paid 56 cents in each dollar of revenue in taxes, whereas international bookies like Entain-owned Ladbrokes and Neds paid 51 cents.
Madden then asked the Tabcorp management if 56 cents was double 51 cents, and said that it was no wonder that Tabcorp was in that much trouble with that management.
But the RWA chief didn’t stop there. He went on to say that for only five cents in the dollar, Tabcorp got the right to own a monopoly in tote and retail betting, and still returned $90 million less to the racing industry it was supposed to support.
Tabcorp issued a statement too. The company said that no wagering operator “provided more funding to the racing industry” than Tabcorp. The company spokesman pointed to the fact that international bookies sent “more than $500 million in profits offshore” and were strongly against investing in racing in Australia.
