The Victoria wagering licence has, according to Gaming Minister Tony Robinson, moved to the next stage of the application process with three successful candidates being chosen from a strong local and international field. On July 29 the three applicants – Tabcorp, Tatts Group and Ladbrokes – were invited to apply for the 12-year multi-million dollar wagering licence, which should be awarded later this year.

Mr Robinson said, “Victoria’s wagering and sports betting industry is worth more than $4 billion a year and attracted interest from some of the biggest and most established wagering ventures in the world. The level of interest shown is a testament to the strength and prestige of Victoria’s racing industry.” He added, “Allowing the successful licensee to operate simulated racing games and a betting exchange creates opportunity for further development of racing-related products. The creation of a Victorian betting exchange will also ensure any economic benefits are retained in the state for our community.”

Tabcorp has not commented on the Victoria Government’s press release although in yesterday’s 2010 full year results CEO Elmer Funke Kupper said the company expects the Victoria Government will award the post-2012 wagering licence by 2011, which would allow Tabcorp to chart the future direction of the company with greater clarity. He also said that trading conditions are likely to remain challenging in the near term and that the company is well placed to benefit from an improving economy.

Tabcorp Holdings Limited yesterday announced a normalised net profit after tax of A $477.3 million, down 3.8%, for the year to 30 June 2010. Normalised earnings per share were 78.4 cents, down 11.6%, following capital management initiatives in the previous year. The reported net profit after tax was A$469.5 million, down 10.0%. Normalised net revenue was $4,232 million, up 1.5%. Revenues were driven by strong growth in Wagering and at Star City casino, but held back by declining gaming markets in Queensland and Victoria. Expenses were up 2.9%.

News came yesterday of a further expansion of casino facilities at Star City in Sydney, including new 3000-seat Events Centre, more food and beverage outlets and premium international VIP facilities. Chairman John Story said, “Today, the company announced a further expansion of Star City casino. Star City is a great asset in one of the most attractive cities and gaming markets in Australia. Our investment of $960 million will give Sydney a world class casino and entertainment destination.”

Funke Kuppe commented, “In 2010, we saw significant variations in the growth rates of the gaming markets in which Tabcorp operates. Whilst recent trading shows improved activity levels, it is too early to be confident that all markets will return to growth this year. This will depend on an improvement in economic activity and discretionary spending. Our growth in market share puts us in a good position.” (E-08.06.10)

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