Tabcorp has signed a retail exclusivity extension in its home state of South Australia, with final approval currently being considered by the Independent Gambling Authority.
The Australian gambling operator, whose licence to operate in the state is set to expire in 2100, agreed the exclusivity extension until 2032 through its wholly owned subsidiary UBET SA Pty Ltd.
“We are pleased to have extended retail exclusivity for wagering in South Australia,” said Tabcorp managing director and CEO David Attenborough.
“[We] look forward to continuing to work with the Government, our venue partners and South Australian racing.”
UBET operates through approximately 350 agen- cies across South Australia, with Tabcorp’s total Australian presence covering 4,300 retail venues across the country.
The company reported that the existing contract terms will remain unaltered for the extension, beside a new annual fee. The contract detailed UBET has additionally secured partnership exclusivity for racetrack signage and wager offerings across the state’s three codes of racing.
The agreement follows the February report on Tabcorp’s half year financial results, ending 31 December 2017.
The report revealed profit of $26.4m, a 58 percent drop from the previous year, which the company citing $57m in one-off costs attributed to Tabcorp’s merger with Tatts Group in December.
The $11bn deal with the Australian wagering firm also saw Tabcorp jettison its profitable machine game system provider Odyssey Gaming Services, and online subsidiary Luxbet.
The South Australia exclusivity extension may go some way to reassure shareholders, with the additional $130m per annum figure promised by Attenborough as a result of the merger yet to be proven.
Though the recent fall in profits was reportedly expected, Attenborough hinted in a company statement that further acquisitions may wait until normal operation has been resumed.
“We will remain committed to a disciplined approach to operating expenses and capital investment to deliver sustainable returns to our shareholders.”