Tabcorp set to cut payments to PubTAB’s

Tabcorp is planning a major investment into its retail wagering network, with a multimillion-dollar upgrade of betting facilities at pubs and clubs, while also proposing to end traditional payments made to venues for hosting terminals.

According to the Australian Financial Review, Tabcorp chief executive Gillon McLachlan said the company would prioritise improving the retail experience across its national network of 3700 venues.

“This investment will make pubs and clubs busier and is at the heart of our business,” McLachlan said. “We will be injecting unprecedented levels of promotions and new initiatives into our retail network over the next 12 months as we aim to revitalise our retail offering.”

While Tabcorp’s plan includes introducing a minimum wagering turnover threshold for venues, the proposal has raised concerns with the Australian Hotels Association (AHA), particularly over its impact on smaller country pubs.

In a communication to members, the AHA warned the proposed changes “could have a material impact” on the viability of many PubTAB operations.

As part of its strategy, Tabcorp has committed to spending more than $20 million over the next financial year on customer incentives such as wagering credits and special promotions to be offered in-venue. The company aims to reinforce its market dominance in retail betting throughout much of Australia.

McLachlan described the plan as “the biggest upgrade to our retail network in the company’s history” and emphasised the importance of collaboration with venue partners.

“We want to grow the retail network and work transparently with our partners to create alignment on a growth strategy that creates better commercial outcomes for venues,” he said.