In the state of Victoria the Australian gaming company Tabcorp recently lost its poker machine duopoly. It has also been losing revenue from its totalisator business in Victoria and New South Wales to online betting operators. Tabcorp has now decided that if it can’t beat the Internet wagering firms it will join them.

Australia’s Northern Territory has a thriving online betting market as it allows bookmakers to offer better odds than in Victoria and NSW. Turnover is estimated to be around A$3 billion a year. Tabcorp has applied for a racing and sports wagering licence in Northern Territory as a way of regaining some of its lost revenues.

Not only does Northern Territory offer the least restrictive gaming regulations it also has a rapidly growing economy. NSW and Victoria are likely to see cuts in tax revenue and the racing industry is losing money presently levied on the TAB and bookmakers as online betting increases. The NSW Government may introduce ‘race field’ betting, which will require online operators to pay a levy to the racing industry.

Tabcorp estimates that at the moment revenue loss to online betting companies is around A$25 million in NSW and A$18 million in Victoria. The company intends to offer fixed odds racing, tote odds betting, fixed odds sports and novelty events. The service will be both online and by telephone and operate as a separate division of Tabcorp. (E-05.21.08)

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