Tabcorp Eyeing UK Gambling Market
Tabcorp, the largest wagering operator in Australia is making a splash by trying to capture the $7 billion online betting market of the United Kingdom. In fact, Tabcorp is destined to challenge its rivals as it is set to launch the much anticipated Sun Bets deal. The Sun Bets deal is a strategic partnership between Tabcorp and multi-billion News Corporation, headquartered in London. As one of the media giants in U.K., the partnership will allow Tabcorp to reach over 1 million registered users of Sun and other subsidiaries of News Corporation. According to the industry experts, this is also a strategic move by Tabcorp to retain the reputation of its brand as Australia’s premier online betting spot because the entry of large number of competitors from the UK have eroded the market share of Tabcorp, in recent years.
As the deal commences, various high-profile postings are visible. For instance, Jamie Hart is a well-known name in the Australian gaming industry, who resigned from William Hill, in March, to join Tabcorp as the head of Sub Bets App team. Jamie Hart has already established sound reputation by introducing various innovative products in the online gambling industry in the U.K. In fact, he is regarded as one of the pioneers of online betting who has also worked in the Australian casino industry. His extensive experience in the online gambling industry in the U.K. and Australia seems to be a perfect fit for Tabcorp’s future agenda.
On the other end of the spectrum, is recent induction of Rebekah Brooks as the CEO of News Corporation. The reentry of Rebekah Brooks is seen as a major reason for the partnership. Earlier, Rebekah Brooks had resigned due to the highly publicized hacking scandal of Sunday Tabloid, News of the World, in 2011. Besides, it is also rumored that the launch of Sun Bets App is delayed to coincide with Premier League Season in the United Kingdom. As the league starts in August, the earlier launch of the App was delayed from March.
Insider reports also suggest that the contract between Tabcorp and News Corporation will last for a decade. Based on the performance of the Sun Bet Apps, the contract is likely to continue, thereafter. Accordingly, Tabcorp will pay News Corporation a stipulated amount from the revenue generation. While analysts agree that Tabcorp didn’t pay any upfront payment to News Corporation, the exact share of the revenue share is also undisclosed. Hence, it is likely that both companies view the strategic deal as important to their respective goals.
Until now, the Sun mostly ran Bingo-themed online bets. However, partnership with Tabcorp and the launch of Sun Bets App will likely allow the Sun to integrate a large variety of online offerings tailor-made for its audience. As such, the partnership will focus on horse-betting and the lucrative sports-betting markets. In fact, the latest Sun Bets App will prove a perfect launching pad for the much anticipated “Fantasy Football League” – an attraction for a million registered users of the Sun.
