Entain Sportsbook Operator Is in Talks to Get a Piece of Tabcorp Holdings Ltd While Racing NSW’s Boss Warns of Regulatory Authorization

A benchmarker land-based and online sportsbook operator Entain is bidding a non-binding offer to acquire media and wagering division from Tabcorp Holdings Limited at a huge non-disclosed amount. Entain is a company listed in London and parent to Ladbrokes land-based bookmakers in the United Kingdom.

Tabcorp Holdings Ltd is a Melbourne headquartered firm whose 40 percent revenue comes from the media and wagering branch, that is currently experiencing financial struggles. Entain hopes to get these two branches promising to boost the firm’s other businesses in Australia.

With a market share of 57 percent and over 4000 land-based sportsbooks across Australia, Tabcorp Holdings already has several companies lined up waiting to scoop a partnership opportunity. Yet, even after rebuffing the $11.1 billion offer from MGM Resorts recently, Entain is still advantageous and likely to win the wagering and media division. The brand is responsible for the tremendous growth of online sportsbooks including SportingBet, Bwin, and others, giving it an advantage over other brands.

Moreover, Entain has been responsible for increased brand value with the recent been Tabcorp holdings value increasing by more than 12 percent. According to David Brohan from Goodbody Stockbrokers, value growth for brands in Australia is a rare opportunity considering the market is consolidated. Yet, even after being responsible for the increase in value, Entain will break a sweat before it closes a deal with Tabcorp.

Racing NSW Boss Warns Of Regulatory Authorization

According to New South Wales (NSW) boss Peter V’Landys, he must approve any purchase of the Tabcorp Holdings wagering division. He added that his decision to grant a brand authority to run Tabcorp’s wagering division must be earned as he won’t give it easily. The Australian gambling giant relies on long term betting licenses granted by individual Australian states with local regulators playing a significant role in the certification process. As an RSW gambling regulator, earning Peter’s favor will come in handy for any potential takeover.

Brands interested in purchasing Tabcorp Holdings wagering business also have to convince the firm of its interests. According to a Tabcorp board unit, the firm getting a monetary offer won’t necessarily result in the sale of its media and wagering business. If lucky, Entain could become the largest multi-channel and multi-brand wagering firm in Australia.

Selling the collapsing wagering and media Tabcorp’s branches would benefit the firm. Yet, the company has announced voluntary proposals from various prospects that might not translate to a transaction. According to the board, the proposals are non-binding, confidential, and indicative. Moreover, the winning prospect will have to pass financial and regulatory approvals among other conditions.

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