🔒 🔒 One Pool beating fixed odds in 60 per cent of races, McLachlan tells Tabcorp shareholders

Tabcorp chief executive Gillon McLachlan has launched a defence of Tabcorp’s One Pool at the company’s annual general meeting, saying that the new united pool is paying better odds than the fixed-price product in about 60 per cent of races.

One Pool, which merged Australia’s three tote pools when it launched on October 2, is building pool depth, improving price stability and creating opportunities for additional jackpot-style products, McLachlan says.

One Pool faced early criticism after fixed odds paid more for the winner in 13 of the 20 races at Randwick and Flemington on its first major Saturday. That was a small sample, however, and the final four Flemington races were commingled with World Pool, which carries a higher takeout rate.

The longer-term test is whether the combined pool can reverse the tote’s decline.

Tabcorp’s pools had been shrinking by about 5–6 per cent annually, with parimutuel betting contributing roughly one-third of company revenue in FY26, down from half in 2021/22.

Chief wagering officer Michael Fitzsimons told The Straight before launch that the first-year objective was to arrest that decline and improve the customer experience, rather than deliver substantial immediate growth.

Speaking to shareholders, McLachlan confirmed that sport products, pricing improvements, promotions and broader commingling are also in development for One Pool.

“It’s important to note that the National Tote is just the start of what One Pool will become,” McLachlan said,

“The vision future state sees any Tote bet around the world on an Australian race being bet into ONE POOL.”

It was also confirmed that the company’s new retail commercial model is now operating in more than 3300 venues, representing roughly 97 per cent of turnover generated by Tabcorp’s former contracted retail network.

McLachlan said next-generation electronic betting terminals are intended for every venue within two years and that digital in-venue turnover rose 9 per cent in FY26, while in-venue sport turnover rose 25 per cent.

“SKY can broadcast every race meeting in Australia and that’s critically important, because it allows us to grow our global B2B distribution rights,” McLachlan said.

McLachlan says the proposed takeover of BetMakers, valued at about $283 million and targeted for completion in the third quarter of FY27, will speed up Tabcorp’s wagering technology overhaul.

Tabcorp is targeting $30 million in cost synergies by the end of the second year of ownership.

“BetMakers has a larger global footprint than Tabcorp and I’m looking forward to tapping into those relationships to grow our global B2B Media and Tote businesses,” he said.

Meanwhile, the company said it has no further update on the AUSTRAC enforcement investigation it disclosed on May 7.

Tabcorp said in its May announcement that AUSTRAC had raised serious concerns about its ability to identify, mitigate and manage money laundering and terrorism financing risks.

The investigation’s initial focus was whether Tabcorp maintained and followed a compliant anti-money laundering and counter-terrorism financing program and appropriately monitored customers. AUSTRAC advised at that time that all potential outcomes remained open, including no further enforcement action.

“We have a dedicated team fully cooperating with AUSTRAC and we’ll inform the market when there is a material update,” the chief executive said.

“I’m committed to leading a compliant Company. Nothing is more important to me.”

“Our growth plans will also not come at the expense of keeping our customers safe.”

McLachlan said the current financial year was all about executing the strategy he has set out since taking over as CEO in August 2024.

“FY27 is about being relentless in executing our Game Plan,” he said.

“As our team knows – we believe everyone can get to 97 per cent. It’s the final 3 per cent that sets the best apart and every day we strive to go the extra 3 per cent.”

For FY26, Tabcorp recorded group revenue of $2.63 billion and EBITDA before significant items of $431.7 million, up 10.3 per cent. Statutory NPAT rose by 26.5 per cent, reaching $46.3 million, while net debt fell to $533.1 million.