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.