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ACTTAB to be sold to Tabcorp

By 30 July 2014 5

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The ACTTAB shareholders have announced today that following a competitive tender process Tabcorp has been chosen as the successful purchaser of ACTTAB. The sale of ACTTAB and associated issue of licences has achieved a sale price of $105.5 million.

Tabcorp has an extensive history operating as a successful wagering operator. Tabcorp operates totalisator and fixed odds wagering through TAB brands in both Victoria and New South Wales, and operates a Northern Territory licensed online bookmaking business, Luxbet.com.

The sale transaction is expected to complete later in 2014. The interim period prior to completion will allow Tabcorp to proceed through final probity checks by the Gambling and Racing Commission and to prepare their systems for integration. Through this period, ACTTAB and its staff will largely continue on a business as usual basis.

Tabcorp has agreed to offer employment to all existing ACTTAB staff. Staff will be offered similar and no less favourable terms than those that currently apply with full recognition of prior service being carried over. The agreement is for at least three months from date of completion.

Retail premises will benefit from investment, rebranding and product offerings to their customers. Tabcorp has committed to spending at least $2 million on improving their retail outlets over the next three years and to maintain a strong retail presence in the Territory for at least the next 10 years.

Contractual arrangements with Tabcorp also ensure that:

  • In addition to the payments from government, the racing industry is guaranteed an increased amount of race and other sponsorships from Tabcorp of at least $300,000 (indexed by CPI) for at least ten years; and
  • Continuing the proud tradition of ACTTAB, local community and sporting organisations will continue to receive from Tabcorp at least $400,000 in sponsorships and support (indexed by CPI) for at least ten years.
  • Tabcorp will acquire a new Totalisator licence for a period of 50 years with an annual licence fee of $1 million indexed by CPI.

Tabcorp will also continue to contribute $50,000 per annum (indexed by CPI) to the Territory’s problem gambling fund over the full 50 year licence period.

We welcome Tabcorp to the ACT market, and believe that previous customers of ACTTAB will welcome the innovation and product choice that Tabcorp offers.

(Katy Gallagher and Andrew Barr Media Release)

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5 Responses to ACTTAB to be sold to Tabcorp
#1
HiddenDragon2:38 pm, 30 Jul 14

This might help to pay for the trams, but thanks to those pesky non-Government Senators, there’ll be no federal top-up without a satisfactory cost-benefit analysis. Oh well, tomorrow is another day.

#2
davo1013:30 pm, 30 Jul 14

HiddenDragon said :

This might help to pay for the trams, but thanks to those pesky non-Government Senators

And a PM who’s on the record as stating no Commonwealth funding for rail projects as they are state owned assets.

#3
dungfungus4:06 pm, 30 Jul 14

davo101 said :

HiddenDragon said :

This might help to pay for the trams, but thanks to those pesky non-Government Senators

And a PM who’s on the record as stating no Commonwealth funding for rail projects as they are state owned assets.

Of course PM Rudd, PM Gillard and PM Rudd never said the same thing did they. But that was when the ACT Labor Government kept saying no to light rail.

#4
davo1015:06 pm, 30 Jul 14

dungfungus said :

Of course PM Rudd, PM Gillard and PM Rudd never said the same thing did they. But that was when the ACT Labor Government kept saying no to light rail.

Your history is a bit wonky. What about the ACT Government’s 2009 Infrastructure Australia submission for a light rail system, doesn’t that count?

#5
dungfungus5:50 pm, 30 Jul 14

davo101 said :

dungfungus said :

Of course PM Rudd, PM Gillard and PM Rudd never said the same thing did they. But that was when the ACT Labor Government kept saying no to light rail.

Your history is a bit wonky. What about the ACT Government’s 2009 Infrastructure Australia submission for a light rail system, doesn’t that count?

There is a lot of me a bit wonky and yes, you are right again, I totally forgot about that one.
It must have been a really bad proposal for a Federal Labor government to knock back a State/Territory Labor Government. They must have left the triple line value added profile building factors out.
At the end of the day if Labor knocks it back why should the coalition give it oxygen?

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