SuperTAB punters to shoulder higher takeout rates under national tote 

SuperTAB punters will bear the brunt of the process that allows the creation of a national tote, with Tabcorp’s chief wagering officer, Michael Fitzsimons, revealing that takeout rates will increase for popular exotic bet types.

Speaking a day after Tabcorp announced the parimutuel national tote would become a reality early in the new racing season under the leadership of chief executive Gillion McLachlan, Fitzsimons confirmed the merged SuperTAB, NSWTAB and UTAB pools would see higher percentages for a number of bet types.

When the national tote goes live, Fitzsimons said the NSW TAB and SuperTAB takeout rates for trifectas will increase from 21 per cent to 21.5 per cent, and the first four overround will go from 22.5 per cent to 23 per cent. 

The staple quadrella bet type will also increase from 20 per cent to 20.5 per cent. Victorian, Western Australian and Australian Capital Territory punters bet into the SuperTAB pool under the state-based systems.

However, Queensland, South Australian, Tasmanian and Northern Territory punters, who bet into the UTAB win market pools, will be better off under a national tote. 

The takeout rate for UTAB win markets will decline from 15 per cent to 14.5 per cent, bringing it into line with NSW and SuperTAB overrounds, while its treble betting option, effectively a three-leg quaddie, will drop from 25 per cent to 20 per cent.

In reality, the takeout rates are higher than the mandated figures because of the rounding down to the nearest 10-cent dividend for each runner, often causing the takeout rate to balloon to 117 and 118 per cent.

Tabcorp’s co-mingled pools with the Hong Kong Jockey Club, for instance, operate with a five-cent dividend.

Fitzsimons qualified the company’s position by indicating that the takeout rates for its parimutuel products would be reconsidered once the national tote was operational.

“As things stand, we have a different takeout rate in the different territories. Part of this was to bring it together. Harmonisation is our starting point,” Fitzsimons told After outlining the percentage takeout rates to SEN’s Giddy Up with Gareth Hall on Thursday.

“We need to align these takeout rates into one with the national tote. We are making a few small changes as we bring together UTAB, SuperTAB and NSW TAB … but it is really important to stress that this is just to get it up and running. 

“This is the easiest and quickest way for us to get going. Once the data comes in we will start to analyse it and see what is the pinch point in the turnover graph that gives customers the best value for money and makes the tote as profitable for us, but also as pleasurable for customers as possible.”

Any changes to takeout rates would need to be made with principal racing authorities in mind, Fitzsimons says, pointing out that some regulators “have turnover contracts and some of them have revenue share contracts so alignment of that is a hugely important part in order to make sensible changes that work for everyone”.

Any changes would also be implemented to stimulate turnover, which is “not necessarily just a margin play”, with Fitzsimons believing that “the takeout rate in itself isn’t the be-all and end-all” and that it depended on the market, with field sizes taken into account.

“I think we also have to work in a world of generosities and rebates and how that comes together in an ecosystem is a complex question,” he told SEN. 

“So, I’m not avoiding the question. It is going to be a process we work through, but ultimately we need to get to that number that works for our retail customers in a way that gives them value for money in a sustainable pool.”

Fitzsimons, who joined Tabcorp 12 months ago from the Hong Kong Jockey Club, suggested that the national tote would be operational “within the next five weeks”.

Since McLachlan was brought in as CEO two years ago, he has made it his mandate to reinvigorate the parimutuel product, with the national tote is number one objective.

At the Asian Racing Conference in Saudi Arabia in February, McLachlan said Tabcorp had lost half of its market share to rival corporate bookmakers over four years, between 2018 and 2022.

Market leader Sportsbet and Entain, which runs the Ladbrokes and Neds brands in Australia, have been among the online bookies to capitalise on the decline of the parimutuel pools by offering tote derivative products such as “best tote”.

Tabcorp chiefs have met with their major competitors about the national tote plan and Fitzsimons hopes to receive a buy-in for a “wholesale tote” offering.

“We’ve had good conversations with them. They are obviously best placed to comment on their own intentions but it does impact their derivative products, best of (tote), etc. Maybe that’s going to impact the commerciality of those products,” he said.

“We expect them to respond; they always do. The proposed wholesale tote is the answer. I think it’s best for us, it’s best for them and I think it’s best for the industry if we can get them moving into the wholesale tote.

“Liquidity begets liquidity. The pool will grow, they will be able to take risk-free bets and we’ll all be able to go on this journey together with the racing industry. 

“Obviously this is contingent on the commercial model that provides value for all parties.

“That is something that we are developing and working through and we are engaging with the corporate bookmakers to see what works for both of us. 

“We intend to do this in a very collegiate way that benefits the industry and benefits all players within the industry.”

Fitzsimons says Tabcorp will also endeavour to engage with high-turnover professional punters “in a way that they’ve never really been managed before to keep money coming in for the industry”.

While the chief wagering officer did not reference specific punters or syndicates, Australians Zeljko Ronagajec and David Walsh, and “Dr Nick” Catsaras, spring to mind as among a host of other big Australian punters who focus on Hong Kong.

“As we said, we’ll look at the rebates, what the takeout rate should be and we will grow it in every way we can,” Fitzsimons said.

“We will have significant control on the international scene (and) so how do we develop that in terms of international corporate wholesale bookmakers? 

“I think that we can have a sustainable, exciting, global-leading tote that is the envy of the world. 

“And (it will be) funding the industry in a way that is not just sustainable, it’s protecting customers and sees the best of Tabcorp around the world.”

Tabcorp’s share price is at 90 cents, up almost 10 per cent in the past five days.