How Changes Affect Gambling Profits


09/27/2013
By Maria McCoyGoogle
However, planned changes in mobile gambling laws in Australia haven’t stopped the company from making growth plans for the future, but will online gambling laws through new elections take its toll on Tabcorp? Tabcorp recorded $127 million in profits even with a 30% dip in revenue. David Attenborpough the CEO of the company has still maintained that this is still a successful year despite the profit slump. The company is still making money and those profits are still a substantial amount of money. Most businesses go through a series of major changes and so profits are expected to drop. For Tabcorp the changes only serve to help Tabcorp go forward in the future with its more up to date structure and services. 

One of the most notable changes that hit hard was the fact that the company took down the pokies section of the business run in conjunction with Tatte Group due to restrictive changes implemented by Victoria. Subsequently both Tabbs Group and Tabcorp sued Victoria for sums that are estimated to be into the hundreds of millions. Vicoria tried to get out of payments promised via the deal made, but both Tabcorp and Tatts Group got their money even though they had only run their pokies outfit for just 46 days before trouble hit.
 
More trouble came in August when there was another rule implemented by Victoria. The Victorian Wagering and Betting License meant that any betting revenue would be subject to a fifty-fifty split rather than the old deal that saw Tabcorp take over three quarters of the cash again affecting profits. On the other side of it Tabcorp did expand its licences in New South Wales to 2033 and also in Queensland for its Keno licence, which is to last until 2047 giving the company guaranteed status in these regions while limiting the risks of the company shrinking or being pushed out of the market.
 
In line with the company’s expansions Tabcorp Gaming Solutions also opened up. This is to help gaming establishments market their business and procure machines, both of which will help keep the gambling industry strong across Australia.
 
Later more bad news hit as overall wagering by customers fell by 4.8% leaving a 12% hole in the business’s earnings. Although, this was softened by figures in the fixed odds market revenue side of the business that went up by 25.8%. Furthermore, the Luxbet side of the business is also expanding as revenue went up 40%. Moreover, Tabcorp contributed a total of $665 million dollars to the Aussie racing scene again proving that Tabcorp is integral part of the Aussie gambling market.


 
Tabcorp now has a large portion of the mobile market with its Android application as well as IOS downloads performing well above average. Their mobile applications recorded 900,000 downloads. In line with their huge mobile gaming potential Tabcorp have secured a 5 year deal with Telstra to provide the backbone for the business’s wagering services and betting kiosks as well as other live services. This gives Tabcorp Next G as well as Next IP network access that opens up all kinds of options to allow flexible gaming and to speed up the operators gaming and financial systems plus boost security.
 
With the way things are going it seems that new laws in regard to gambling online in the country are not cause for concern as Tabcorp have already put into action plans that will stabilise the company’s future in any scenario. They have a good live gambling base and losing the mobile base may be a blow, but they surely have enough to fall back on to stay alive in the Aussie gambling market.

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