The totalisator, once the financial backbone of the Australian racing industry, has reached a critical intersection as a viable on-course method of betting.
In a decision blamed on the changing habits of customers and expedited because of the end of a joint venture agreement with Racing Victoria, Tabcorp will remove its on-course service, which also included fixed-odds betting, at selected meetings across the state.
The move came into effect on Sunday, and while the Jericho Cup meeting at Warrnambool offered a TAB option, a midweek Victorian provincial fixture this week will provide a glimpse into life without an on-course totalisator.
TAB windows will be shut at Bendigo on Tuesday, signalling the end of an era as Tabcorp winds back its on-course presence.
Patrons wanting a cash bet must do so with one of the on-course bookmakers fielding at the meeting. The other option is to be through digital channels.
It is a decision Tabcorp insists is a response to a rapidly growing digital market that has changed how punters are wagering.
There is also the matter of reducing costs as Tabcorp implements a reset of its business strategy under new chief executive Gillon McLachlan.
Tabcorp announced a $1.36 billion loss in the 2023/24 financial year, revealing a non-cash impairment charge of $1.38 billion because of a sluggish wagering market and additional taxes it pays in NSW and South Australia.
Bren O’Brien
McLachlan has made no secret Tabcorp will be run as a much leaner operation, promising to make the wagering firm a “cost-effective” outfit.
Reducing its foothold on Victoria’s racetracks in all three codes appears is designed to save costs.
In a statement, Tabcorp says it will be business as usual for its on-course cash facilities at major meetings across Victoria.
What the wagering company didn’t say is that Racing Victoria will bankroll the employment of on-course TAB operators at the selected meetings until the end of the racing season.
“To minimise any potential impacts on clubs and their customers, RV has reached agreement with TAB to fund on-course wagering services at 140 race meetings throughout the remainder of the 2024/25 season,” an RV spokesman told The Straight.
“This will include metropolitan meetings and a large selection of feature country meetings, including country and picnic cups.
“With on-course cash wagering continuing to decline as more punters migrate to digital wagering, TAB have made the decision to reduce their on-course services to save costs.”
Bren O’Brien
Tabcorp’s decision to withdraw on-course cash wagering facilities, including electronic betting terminals (EBTs), was delayed until the end of the spring carnival.
However, what the Victorian on-course wagering landscape might look like in 2025/26 remains to be determined, according to RV.
“RV will be working closely with Country Racing Victoria throughout the remainder of the 2024-25 season to best understand the impacts, in the knowledge that on-course cash wagering has been minimal at those meetings which will no longer carry the service,” the spokesman said.
"RV has reached agreement with TAB to fund on-course wagering services at 140 race meetings throughout the remainder of the 2024/25 season." - RV spokesman
Tabcorp says it is merely accommodating a wagering environment reshaped as punters migrated to different ways of betting during the pandemic and haven’t returned to traditional outlets.
“Tabcorp is transforming to meet the changing needs of our customers,” a spokesman for the ASX-listed company said.
“We’ve launched a new TAB App and new products which give our customers more innovative bet types and ways of placing a bet than ever before.
“This is all part of creating the ultimate racing and sports entertainment experience, whether it be at home, in our 4000 retail outlets nationwide or at the track. There’s never been more ways to place a bet with TAB.
“As part of that evolution we will be reducing the number of cash terminals at Victorian racetracks because a majority of customers have told us they want to bet digitally.
“As the partner … TAB will continue to offer full cash services at race meetings that are the most important to the Victorian racing industry.
“This includes metropolitan meetings and feature race days on the provincial and country circuit.
“These changes better reflect the evolving betting patterns and feedback of our customers.”
Matt Stewart
Under the terms of the historic VicTAB joint venture, the TAB was obligated to have cash outlets at all Victorian race meetings.
RV lobbied the state government but failed in its bid for the service to be retained under the new Victorian wagering licence, which was put in place in August.
As such, there is no requirement on Tabcorp to provide on-course wagering services at any Victorian race meeting.
Tabcorp’s move in Victoria could be a forerunner to on-course TAB betting going the same way in other states, most notably NSW.
Bren O’Brien
Discussions between Tabcorp and the NSW government about the wagering firm’s exit from a deal locked in until at least 2033 have been ongoing.
Tabcorp claims it is disadvantaged on issues such as the taxes it pays compared to its chief rivals Sportsbet and Ladbrokes.
The Straight understands finer details of the Tabcorp-NSW government review have taken longer than expected to work through, with an announcement is expected in the first quarter of 2025 at the earliest.
