‘Dare to win’- Tabcorp targets national tote within nine months

Tabcorp chief executive Gillon McLachlan is optimistic the long-awaited national tote will be delivered by the end of the current financial year, telling the company’s annual general meeting it would be “good for industry, good for customers and it will be good for TAB”.

McLachlan has made the national tote initiative, which would see the three different Australian totes unified and create one parimutuel pool, a key strategic goal since his appointment to the role in August 2025.

Addressing the AGM, McLachlan said negotiations with state racing bodies continued, with a target to complete the integration of the national tote by the end of FY26.

“At last year’s AGM I said I supported a national tote. We are seeking to deliver it. We’re engaging with state racing bodies, and I remain optimistic we can make a national tote a reality in FY26. This will be good for industry, good for customers and it will be good for TAB,” he said.

Tabcorp chair Brett Chenoweth, who was re-elected as a director at the meeting, said the company’s commitment to working closely with the racing industry remained as strong as ever.

“We’re proud of Tabcorp’s longstanding role as the largest contributor to Australian racing. As well as supporting the Australian economy and local businesses and local communities, Australian racing is at the heart of this company, and we’ve long advocated for a sustainable and well-funded racing industry here,” Chenoweth said.

While racing is still at the core of Tabcorp’s business, it still faces a market shift. In its annual report released in August, Tabcorp confirmed that racing turnover has dropped 4 per cent over the past 12 months, while sport turnover had grown 5.3 per cent.

It is believed the turnover decline has been arrested over the past few months.

Newly struck racing funding agreements with both the Queensland and Victorian governments have driven significant upside in what has been an otherwise challenging period for Tabcorp. The Victorian deal resulted in a major uplift in revenue in FY25, which grew from $2.3 billion to $2.6 billion.

A new deal in New South Wales is considered extremely important to Tabcorp’s future fortunes, and Chenoweth said progress was being made, albeit not at the same rate as the national tote.

“It is true that in the last couple of years there’s been a lot of work done around relationships with the Victorian government, so that licence has contributed, as I mentioned today, to the success of this business in Victoria,” Chenoweth said.

“Queensland, setting the level playing field, has contributed as well and with respect to New South Wales, we’ve got ongoing discussions with them, a very strong relationship with Racing NSW and the New South Wales government, and we’re going to continue to work with them in terms of racing reform.”

McLachlan’s first year in the role has also been highlighted by a renewed focus on retail, with a change in the commercial model, including renegotiated terms with venues, and the establishment of initiatives like Tab Time.

“During the year we commenced execution of the first phase of a new TAB retail commercial model and are progressing a longer-term commercial model at the moment. We’re working to create a structurally profitable retail business and providing pubs and clubs with a better customer offering,” McLachlan said.

“I stress again that there is still much to do, but you will see continued improvement in FY26. Saturday at the TAB Everest was a great example of our evolved offering. From TAB Time in venue to TAB Takeover on track and monster trucks, TAB Everest Day was awash with green.

“That’s what you can expect from us this year. I look forward to doing the same in Cup Week. We’ll also talk more about our media business as we look to maximise our distribution footprint.

“The way we present will continue to evolve. The sky is looking different. We have new talent and better integration with TAB, particularly in retail.”

Chenoweth, meanwhile, re-iterated Tabcorp’s desire to see the federal government execute long-expected changes in gambling advertising.

“No one wants children gambling. No one wants people that aren’t in a secure position to gamble. So I think we’re all aligned in that,” he said.

“Our position is we’re waiting for the review of the government. We’ll obviously adhere to their recommendations and what comes out of that. We’re supportive of that review.”

The chairman was not drawn on giving any details of the recent settlement of the long-running unfair dismissal case brought by previous CEO Adam Rytenskild, who departed in March 2024.   

“There’s not much I can say about the confidential nature of the settlement with the last CEO. It was an unfortunate situation. We ended up with a negotiated settlement we thought was the best use of shareholder funds,” he said.

“It was a practical settlement, and we can’t say anything more on that.”

McLachlan’s time in the CEO chair has featured a significant surge in Tabcorp’s share price, from a low of 39 cents to its current level of $1.06.  

One of the upsides of that for the CEO is that he is in line for over $17 million of incentive options in FY27 should the improvements in Tabcorp’s financial position continue.

Despite the objection of the Australian Shareholders’ Association, the motion to grant the long-term options to McLachlan was easily passed.

Director Raelene Murphy, who was also re-elected at the meeting, best summarised the change in mood and approach at Tabcorp.

“It’s about offence, not defence after many years of defence,” she said.