Australian gaming company Tabcorp has secured a deal to acquire the regional ACT government’s ACTTAB gaming business for AUS$105.5 million (€73.8 million/$143.5 million).
The deal, which was announced earlier today (Wednesday), is subject to approval from the Australian Competition and Consumer Commission.
As part of the acquisition, the ACT government, which oversees an area of New South Wales, will grant Tabcorp an exclusive 50-year totalisator licence.
The government will also award Tabcorp a sports betting licence for an initial term of 15 years, with the option of rolling renewals to take the arrangement through to 50 years, and ongoing approvals to offer Trackside and Keno products for 50 years.
Tabcorp will pay the government an annual licence fee of $1 million, and the initial integration period is expected to take about 12 months.
“The acquisition of ACTTAB presents a unique opportunity for Tabcorp to secure long-term licences on highly favourable terms in a jurisdiction that is complementary to our existing wagering and Keno businesses in Victoria and New South Wales,” Tabcorp managing director David Attenborough said.
“We look forward to leveraging our capabilities to strengthen the product offering available to ACTTAB customers and to deliver the best outcome for the racing industry and other stakeholders including our venue and community partners.”
source : www.igamingbusiness.com