Hotel group walks away from TAB, warns racing could pay the price

At least seven major hotels in southeast Queensland have closed their TAB facilities this week, with their owner blaming escalating costs and compliance and accusing Tabcorp of making TAB services commercially unsustainable for venues.

Comiskey Group director Rob Comiskey confirmed his company had not signed a new retail agreement with Tabcorp and that TAB services at seven hotels ceased on Wednesday.

He also confirmed that two new hospitality venues being built in Brisbane and on the Sunshine Coast would not feature TAB facilities, while warning the racing industry it risked losing engagement if live racing was removed from pubs.

“We’ve got a 4000-square-metre hotel opening in Strathpine … and it had a TAB in it. So it doesn’t have a TAB anymore,” he told The Straight.

“Aura, which is a $68 million build currently under construction … doesn’t have one.

“We’ve got another probably two or three hotels to build, and none of them is going to have TABs in them.”

Tabcorp has confirmed that 3300 venues continued to offer retail betting across Australia, and that a small amount, around 200, had opted not to renew.

Of those 3300 venues, around 300 are owned by ALH, which is yet to officially sign on. That agreement was likely to occur shortly.

While it may be a minority of venues impacted, Comiskey said that the economics did not stack up for venues, estimating the costs of a new agreement would be around $300,000 a year to his business.

“There’s no profit in it. If there’s no profit in it then all there is is downside,” he said.

Tabcorp has publicly maintained that the new model is designed to drive greater venue traffic and wagering activity through investment in retail products, promotions and venue upgrades.

It is also understood that it had implemented a recent upgrade of TAB facilities at the Eaton’s Hill Hotel, a Comiskey-owned venue, before the current dispute.  

“Our new model is about improving the entertainment and shared experience of having a bet, bringing more people into local pubs and clubs,” Tabcorp’s chief commercial and media officer Jarrod Villani said.

“Retail is at the heart of everything we are doing strategically at Tabcorp.

“We’re injecting unprecedented levels of promotions and new initiatives into the network, including TAB Live – our in-play betting product – and rolling out new Next Gen Terminals to complement the uplifted look and feel of venues and existing new products like TAB Time and TAB’s Shout.” 

Comiskey is clearly not impressed by how the process was handled and is particularly scathing about what he calls an inadequate consultation process, accusing Tabcorp of presenting him with a non-negotiable outcome.

“That’s just telling us, ‘We’re going to ram this down your throat, and if you don’t sign it, you’re out,” he said.

Tabcorp’s consultation process began in May 2025 with a series of town hall meetings held across Australia, which all 3500-plus venue operators were invited to attend.

The Straight also believes that Tabcorp executives have met with Comiskey and his team over their concerns, but the group opted not to renew.

That led Tabcorp to switch off its services on Wednesday. Comiskey said that ALH being allowed to continue while it finalises its deal was a double standard.    

Tabcorp also contests Comiskey’s suggestions that venues were being made to absorb compliance obligations and risk transfer under the new agreement.

Comiskey called on Racing Queensland to get involved, with fewer venues showing live racing, threatening engagement in the sport.  

“The racing industry should be the one that’s concerned,” he said. “The retail component goes, and what’s the retail component at the moment? Hotels.”

“You’ve got to engage with your customers.”

The Straight understands that Racing Queensland has taken an interest in the current dispute between the venue owner and Tabcorp and will seek more information from industry representatives over the coming weeks.

Villani said that the growth in retail turnover from improved facilities would more than compensate for the short-term drop in venues. Tabcorp also confirmed there was a waitlist of venues ready to sign up.

“The new offering is working. To date, we’ve seen double-digit, digital in-venue turnover growth across our network,” he said.

“With a TAB venue continuing to be around every corner, we are confident that all customers will continue to find a TAB experience near them.”