The Victorian government has announced the final shortlist of companies that are in the running to win the exclusive rights to provide wagering services to the state’s residents. The shortlist includes Tabcorp, Tatts Group and Ladbrokes who will all be competing for the 12 year state gambling license which comes into effect in 2012.
The license is currently held by Tabcorp who effectively hold a monopoly over state sports and racing gambling. According to Tony Robinson, the Victorian Gaming Minister, the new license will allow the holder to hold exclusive rights to establish a betting exchange, as well as to offer pari-mutuel and fixed odds betting on racing and sports.
How much this will generate to the Victorian Treasury is uncertain. Recent developments in internet gambling and legislative challenges to the current Australian framework make it difficult to see how the Victorian government can guarantee exclusivity to the eventual winner of the license. Recent court cases have centred on the installation of internet enabled betting terminals in Victorian pubs that have allowed competitors of Tabcorp to provide gambling services, a move Tabcorp is challenging via the Australian courts.
Robinson has announced that a decision on the contract will be awarded later this year and has described the tendering process as having been “structured to encourage innovation”.
According to industry analysts the tendering process couldn’t have come at a worse time for the Victorian government. Jamie Spence, an analyst that has been watching the Australian pokies and gambling sector closely for the last decade goes on to say…
“Despite the license being worth an estimated $100m to $150m in pre-tax profits annually it appears difficult to see how that Victorian government can guarantee exclusivity to the eventual winner. Technological developments within the industry are accelerating at such an advanced rate that it’s difficult for legislation to keep pace. Without exclusivity it’s likely the revenue generated by the license will fall well below historical achievements.”
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Tags: australia, Australian gambling
This entry was written by Jamie on Tuesday, August 3rd, 2010 at 3:20 am and is filed under News.
