Category: News

ACMA said each of the sites is operating in breach of the Interactive Gambling Act 2001. As such, it is requesting internet service providers (ISPs) to block access to the illegal sites.

Domains flagged include Jogi Casino, Dundee Slots, Lucky Hunter, Lucky Wins, Lukki Casino, Spin Fever, Clubhouse Casino and Winport Casino.

Since the ACMA made its first blocking request in November 2019, some 975 gambling and affiliate websites have been blocked. In addition, over 220 illegal services have pulled out of Australia since the ACMA started enforcing illegal offshore gambling rules.

ACMA committed to protecting players

Website blocking is one several enforcement options to protect consumers against illegal gambling services. 

ACMA says it can take such action if a site offers games not covered by Australian law such as online casino, online slots and in-play online sports betting. Blocking can also be requested if a site is operating online gambling without a valid licence.

Blocking orders are not limited to gambling websites. ACMA can also make similar requests against sites that publish adverts for prohibited gambling services or unlicensed operations.

“ACMA is reminding consumers that even if a service looks legitimate, its unlikely to have important consumer protections,” ACMA said. “This means our laws can’t help if something goes wrong, like if the service provider withholds winnings. 

“Australians can check if a wagering service is licensed to operate in Australia on our register.”

Blocking requests continue to mount up

So far this year, ACMA has requested blocking orders against a total of 28 websites, including the latest round.

In March, ACMA flagged eight sites for beaching national law. These include Lucky7even, 50 Crowns, Rockwin, Bitdreams, Mr Pacho, Casino Infinity, Zota Bet and Spicyjackpots.

Meanwhile, in February, ACMA singled out 12 other websites. Playzilla, Wazamba, Zet Casino, Slots Palace, Nomini, Casinia, SG Casino, Fez Bet, Buran Casino, Spin Better, Golden Bet and Clash.gg were all deemed to be operating illegally.

This followed ACMA clamping down on four major operators for breaching in-play betting rules. Late last year, ACMA flagged Entain-owned Ladbrokes and Neds, as well as Hillside’s Bet365 and Sportsbet. 

ACMA said the operators breached interactive gambling rules by using Fast/Quick codes to facilitate in-play betting on sports. The Interactive Gambling Act 2001 prohibits in-play betting on sports matches, with only limited exceptions.

However, ACMA later conceded the brands eventually complied with rules. As such, it is not taking any further action over the matter.

The country already has a ban on licensed operators offering or providing credit under the Gambling Act. However, under plans set out by the ministry of finance in February, the expanded ban would be more in-depth.

Proposals outline that neither state operators nor gambling agents would be able to process deposits or bets financed by credit. This is regardless of how and when credit is provided, including credit cards.

There is also a focus on a requirement for licensees having duty of care measures to help discourage excessive gambling. The ministry proposed that Spelinspektionen be authorised to set requirements for what these action plans should contain.

Sticking points for Spelinspektionen on potential ban

Publishing its official response, Spelinspektionen says it is largely supportive of the ban. This follows the regulator calling for a full ban on gambling by credit card in November last year.

However, Spelinspektionen did highlight several concerns it has with the current proposals and called on these to be addressed in order to offer greater clarity over the plans.

Firstly, it flags how the memorandum states certain parties, such as non-profit associations that sell bingo games or lotteries, do not accept payments by bank card. This means they are not impacted by the ban.

However, Spelinspektionen states public lotteries also sell tickets on digital sales channels. As such, it calls for measures to be put in place to ensure payment is not made by credit card or financed with a credit provided by a third party for such tickets.

“The memorandum lacks an analysis regarding the consequences that this situation may entail for the public benefit lotteries,” it said.

“Ambiguity” concerns for Swedish regulator 

The regulator also noted an issue over “ambiguity” in relation to the proposed rules. This, it says, largely relates to clarity as to how the term “credit” can be interpreted.

Current proposals refer to an extended credit ban on consumers using account credits to gamble. By definition, Spelinspektionen said, credit linked to a bank account is also account credit.

As such, the regulator says this may be interpreted as meaning licence holders and gambling agents have to ensure a credit space is not used for payments with debit cards. However, the proposals do not include investigative duties for licensees or agents. This, the regulator says, means the planned rules do not go far enough to ensure payees must check if a debit card has a credit limit with every purchase.

Furthermore, Spelinspektionen says proposals do not detail whether licensees and agents must introduce technical solutions or enter agreements with payment service providers to ensure payment does not take place through a credit facility linked to a debit card. 

“Spelinspektionen instead interprets the proposal as meaning licence holders and agents may not allow such a payment if it is possible for the payee to discover without special investigative measures that the payment is made with a credit,” it said. “That is, if the payee knows for some other reason that the gambling bet is financed with such credit.

“The scope of the proposed credit ban regarding debit cards could, for the reasons stated, be specified more clearly.”

Sweden set to follow the crowd with credit ban

Should Sweden press ahead with the planned ban, it would follow other major markets in doing so.

The UK announced a ban on using credit cards to gamble in 2020, with the ban introduced that April. The Gambling Commission determined the implementation of the ban had been smooth and did not lead to “unintended consequences”.

In September 2023, Australia’s government tabled the Interactive Gambling Amendment Bill 2023. The main focus of this was to ban the use of credit cards. 

Norway, one of Sweden’s Nordic cousins, has a similar credit gambling ban in place. In addition, further afield, Brazil has banned gambling with credit cards and cryptocurrency. 

In its annual report for the year to 31 December 2023, Loterie Romande achieved gross gaming revenue of CHF420.7m ($458.9m /€423.9m /£360.6m). This was down 3.4% on the record CHF435.5m generated in 2022.

Loterie Romande, which is the lottery provider for the six French-speaking Swiss cantons, said geopolitical and economic challenges contributed towards the revenue drop. The absence of long jackpot cycles for Swiss Loto and EuroMillions also reduced demand from casual players at points of sale.

Some 70% of adults in French-speaking Switzerland played a Loterie Romande game in 2023. The most popular game was EuroMillions, played by 67% of French-speaking people. This was followed by Tribolo scratchcards (61%), Swiss Loto (56%) and Rento (41%).

Lottery draws remained the largest vertical, generating CHF152.3m. However, this was down 8.4% year-on-year, in part thanks to the absence of long jackpot cycles. Instant win tickets brought in CHF135.3m.

In 2023, 31 players won at least CHF1m thanks to Swiss Loto and EuroMillions.

Financial investments boost results

While revenue decreased, Loterie Romande increased profits and paid a record profit to the public utility in 2023. The group will pay out CHF243.7m to good causes, which is up on the CHF243.4m distributed in 2022.

Savings on financial expenses and income was the biggest contributor towards the profit growth. Unlike 2022, financial investments achieved positive performances, generating a net profit of CHF5.1m. Loterie Romande was able to slightly reduce marketing and general administrative costs.

“This result can be attributed in particular to the rigorous management of operating costs, the strengthening of our digital offering, and – with the launch of the European draw game EuroDreams in October 2023 – the diversity of our product range,” said Jean-René Fournier, chairman of Loterie Romande.

Almost 5,000 projects in Vaud, Fribourg, Valais, Neuchâtel, Geneva and Jura will receive a total of CHF220.8m. National sport will receive CHF19.5m, while the Swiss Horse Racing Federation will get CHF3.4m.

FanDuel has officially been operating in partnership with the OLG since 15 April. This came after the OLG completed its transition from Intralot-run GambetDC, its long-term partner for sports betting in DC.

For the period from the launch day to 14 May, FanDuel’s online sportsbook reported $5.0m in gross gaming revenue. This is some 887% higher than in the corresponding period in the previous year.

There is also a significant improvement in handle. For the same period, players in DC spent approximately $30m betting on sports, up 673% year-on-year.

The OLG also noted that, as a result of higher revenue, it was able to generate more funds for the district. FanDuel gives 40% of revenue to DC, equating to $1.9m for the 30-day opening period – up 690% on last year.

Bright outlook for sports betting in DC

Looking ahead, the OLG says the launch of FanDuel will also likely improve DC’s per capita sports wagering revenue. 

Between September 2023 and February 2024, DC’s per capita sports wagering revenue – tax and GambetDC revenue – was $2.71. However, based on the early figures from FanDuel, this is now likely to exceed $19, which the OLG says will place DC among the highest revenue generating markets in the US on a per capita basis. 

“The transition to FanDuel, the market leader in mobile sports wagering, ensures the long-term viability of mobile sports wagering in the district,” OLG executive director Frank Suarez, said. 

“In addition to a 40% share of GGR and a guarantee of $5.0m in revenue in its first year, the FanDuel partnership brings the benefits of a respected brand, commitment to responsible gaming, an established user base and a superior sports wagering experience for District residents and visitors. 

“FanDuel’s first 30 days have not only met, but exceeded, expectations.”

GambetDC falls by the wayside as FanDuel takes charge

The decision to drop GambetDC came as no great surprise, given the issues the brand has faced in DC. Intralot, which was contracted with DC, struggled to put out a competitive product. In fact, the platform lost $4.0m in 2021.

As such, the OLG approved a request from Intralot to subcontract online sports betting to FanDuel. This allowed FanDuel to go live in DC just a few days later,

Partnering with FanDuel also offers additional benefits to the district. These include the OLG no longer having to pay operating expenses, which were previously between $2.0m and $4.0m a year. Instead, FanDuel now handles payment processing, promotions, marketing and retailer commissions.

While the focus is on FanDuel’s online sportsbook, the new partnership also led to changes in the retail market. FanDuel is replacing betting kiosks at 63 lottery retailers across DC.

The GambetDC app remains accessible to players, but they can no longer use it to place bets on sports. Existing customers have until 15 October to withdraw any remaining funds from the platform.

Mixed market in April

As for the wider DC market, there were somewhat mixed results in April. Revenue fell 59.5% year-on-year to $526,689, with this also 62.4% lower than $1.4m in March of this year.

Spending-wise, players wagered a total of $14.5m during April. This is level with the same month last year but 5.7% behind $15.7m in March.

GambetDC led the way despite the brand ceasing operations in mid-April. Players spent $6.9m which, after taking off $6.5m in winnings, suggests revenue of $394,224. 

For the full month, FanDuel reported $194,236 in revenue off a $550,751 handle.

The Brazilian player has been charged with four breaches of FA Rule E5.1 in relation to his conduct in four Premier League fixtures between November 2022 and August 2023.

It is alleged that Paqueta directly sought to influence these matches by intentionally seeking to receive a card from the referee. This, the FA said, was for the improper purpose of affecting the betting market in order for one or more persons to profit from betting.

The game against Bournemouth on the opening day of the 2023-24 season is one of the four cited. It has been reported that the FA investigation was triggered by suspicious betting patterns surrounding a stoppage-time yellow card received during that game. Paqueta was reportedly interviewed by the FA last September and gave the governing body access to his phone the following month.

Paqueta has until 3 June 2024 to provide a response to these charges subject to any request for an extension to this deadline.

The West Ham player has already denied wrongdoing via his own Instagram page.

“I am extremely surprised and upset that the FA has decided to charge me,” he wrote. “For nine months, I have co-operated with every step of their investigation and provided all the information I can.”

“I deny all the charges in their entirety and will fight with every breath to clear my name. Due to the ongoing process, I will not be providing any further comment.”

Tonali’s worldwide ban

Last season, Newcastle United’s Sandro Tonali received a 10-month worldwide ban from football for breaching betting rules while an AC Milan player.

Tonali was later handed a two-month suspended ban for 50 breaches of the FA’s betting rules after his arrival at Newcastle. He had been charged with 50 breaches of FA Rule E8 for placing bets on football matches between August and October 2023. His ban from football expires in August 2024.

In January 2024, Brentford striker Ivan Toney completed an eight-month ban for breaching FA betting rules.

DraftKings revealed it was to purchase Jackpocket in February 2024. At the time it said the addition of the lottery app would generate up to $340m in additional revenue annually.

DraftKings said it is now focused on integrating Jackpocket into its operations and leveraging synergies to drive sustained growth. The group is looking to tap into the expansive US lottery vertical, while also adding to its existing offering. This, it said, would enhance customer lifetime value and bolster customer acquisition capabilities.

“Today we are announcing the completion of our acquisition of Jackpocket and the commencement of our value creation plan,” said Jason Robins, chief executive and co-founder of DraftKings. “We are well-prepared to quickly launch cross-sell programmes, further improve customer acquisition efficiency and continue to innovate and differentiate with our overall product portfolio for our customers.”

Ed Birkin, senior analyst at H2 Gambling Capital, looked closely at the deal here. “On the face of it, I think it could be viewed as a positive acquisition, providing diversification, scope for significant market growth and another customer acquisition channel,” he said at the time.

Why DraftKings will drive Jackpocket growth

Market leader Jackpocket is designed to offer customers a route to ordering official lottery tickets in multiple states. It is currently available in 18 US jurisdictions, including New York, Texas and Ohio.

The New York-headquartered business claims its app was downloaded nine times more than its closest competitor in fiscal year 2023.

“The completion of the acquisition represents an exciting new chapter,” Peter Sullivan, chief executive of Jackpocket said. “Together, we are confident that we will be even more capable of helping lotteries fulfil their mission of delivering revenue back to the beneficiaries they support.

“DraftKings’ proven reach and cutting-edge mobile platforms will continue to allow us to drive growth and innovation in the digital lottery vertical.”

Strong start to 2024

DraftKings’ February announcement that it was acquiring Jackpocket came just as it raised its 2024 financial forecast. It has since raised that forecast again following an “outstanding” start to 2024. Revenue of $1.18bn for Q1 to 31 March was more than 50% above the $769.7m posted in 2023.

Revenue is now set to amount to between $4.80bn and $5.00bn, up from the initial range of $4.65bn to $4.90bn. This would represent year-on-year growth of between 31.0% and 36.0%.

As for adjusted EBITDA, this is forecast at between $460m and $540, compared to the earlier $410m to $550m.

Following the North Carolina launch in March, DraftKings is now live with mobile sports betting in 25 states. Collectively, these markets represent approximately 49.0% of the US population.

Research conducted by Keurmerk Responsible Affiliates (KVA) and shared with NOGA and operator association Licensed Dutch Gaming Providers (VNLOK) identified minors in the Netherlands as being able to gamble with offshore operators. The findings of the research have been passed onto the KSA.

The research found that the lack of necessary age verification required from legal operators allowed minors to create an account with offshore operators, with an email address or telephone number enough to open an account.

Those below the legal gambling age of 18 could then deposit and gamble. Additionally, the research found deposits with cryptocurrency could also be made, often anonymously, following a simple Google search.

The study also identified illegal casinos using logos of banks and legal operators to encourage minors to deposit in the belief that such acts are safe.

The KVA pointed out previous research, conducted in 2023, which showed illegal sites targeting players looking to bypass Cruks, the Netherlands’ self-exclusion scheme.

In response to the new research, De Goeij highlighted the risks for underage gambling, believing minors are more susceptible to addiction and ensuing consequences such as mental health problems and financial consequences.

De Goeij is keen to see a thorough KSA response to properly address the issue and satisfy its mandate of protecting consumers.

“The Kansspelautoriteit (KSA), the Dutch Gambling Authority, is expected to address these issues rigorously,” De Goeij told iGB. “The KSA is likely to enhance monitoring and enforcement actions against unlicensed operators, imposing hefty fines and blocking access to these websites.

“Educating the public, especially minors and their parents, about the risks of unlicensed gambling and how to avoid these sites can be an effective preventive measure.”

How does NOGA want to see the KSA respond?

De Goeij believes the KSA should increase its collaboration with other jurisdictions by sharing intelligence and best practices to help counter illegal operators.

Additionally, De Goeij is looking for the KSA to work alongside financial institutions to block illegal transactions and cut off offshore operators’ revenue streams, as well as enhancing its technological efforts.

“The KSA should employ advanced technologies like geolocation blocking and AI-driven monitoring to detect and shut down access to offshore gambling platforms,” De Goeij added.

“Working with internet service providers (ISPs) to block unlicensed gambling sites could significantly reduce access.”

Wider black market issues in the Netherlands

The KVA’s research comes in the midst of industry concern over increasing regulation in the Netherlands and the potential effect it is having on black market interest.

Last week, a coalition agreement proposed an increase of the gambling tax to 37.8% from the current 30.5%. The change would provide the state treasury with an additional €202m (£173.3m/$219.6m) in tax. NOGA responded with its concerns that such alterations could drive operators towards the black market.

The proposed tax rise follows a vote earlier this year by the house of representatives to ban “high-risk” gambling, including online slots. The Netherlands minister for legal protection Franc Weerwind will now review and make a decision on whether to approve the law change.

The house also voted to ban online gambling advertising, with untargeted advertising already banned following a law change in 2023.

De Goeij is concerned over the situation in the Netherlands, believing higher taxes and restrictions on advertising will only serve to boost black market popularity.

“The Dutch government and legal operators could see a decline in revenue, undermining the regulatory framework and financial stability of the legal market,” De Geoij continued.

“As players move to unlicensed sites, they lose the consumer protections offered by regulated platforms, increasing the risks of fraud, addiction, and other harms.”

NOGA recommendations

De Geoij made suggestions on how the KSA and the government could form a strategy to combat the potential rise of the black market.

De Goeij would like to see regulation based on evidence and made attractive enough to keep operators and players on the legal side of the market. This, he believes, can be achievable by ensuring restrictions do not “excessively burden” legal operators.

“The KSA and the government should encourage innovation and better customer experiences in the legal market to retain and attract players,” De Geoij said. “They should also be continuously researching market trends and player behaviour to adapt regulations and strategies dynamically.”

“Only by taking a proactive and balanced approach, the Netherlands can protect its citizens while maintaining a robust and attractive legal gambling market.”

iGB reached out to the KSA for comment but is yet to receive a response.

Published today (22 May), the update covers Playtech’s performance in the four months to 30 April. Playtech does not release quarterly financial results, instead opting to release updates periodically.

During the four months, Playtech says it delivered a “solid” trading performance with strong underlying. This, it adds, is despite the impact of customer-friendly sporting results.

Playtech hails B2B regulated market growth 

Looking first at its B2B division, Playtech says this part of the business performed well in the period. It references revenue growth in regulated markets and benefits from tighter cost control as primary drivers of B2B revenue growth. 

“Growth in regulated markets was led by the Americas with the US and Canada increasing their contribution, albeit from a small base, while Mexico and Colombia continue to perform well,” Playtech said.

Playtech said it continued to enjoy the benefits of the “rapid expansion” of the live market, while its B2B casino offering showed strength during the period. 

In addition, Playtech said its higher margin, less capital-intensive SaaS business showed continued momentum. Within this area, the group posted strong revenue growth, further launches and new customer signings.

B2C growth prospects remain in Italy 

Turning to B2C, Playtech mainly focused on the Italy-facing Snaitech brand. According to Playtech, Snaitech performed well on an underlying basis, with wagers showing strength across both the online and retail betting segments. 

“This was achieved despite tough comparatives in 2023, which benefitted from pent-up demand post the football World Cup,” Playtech said.

Also on this, the group notes how strong volumes have been partly offset by player-friendly sporting results in Italy. However, Playtech says it remains “well-positioned” to continue to benefit from the structural shift to the higher-margin online business in the country.

“Given the strategic progress being made across the business, the board remains confident in Playtech’s ability to execute on the exciting growth opportunities across both B2B and B2C divisions over the medium term,” Playtech said.

Playtech issues update on Caliplay

Playtech used the trading update to also address the ongoing dispute with Caliplay, a joint venture with Mexico-facing operator Caliente. However, Caliplay is now seeking to end the legal relationship with Playtech.

The dispute has been rumbling on for some time, with Caliplay launching legal proceedings to annul its partnership with Playtech in October. Caliplay says it chose to make the process public as it says it impacts the running of its regulated business in Mexico.

Playtech hit back at the annulment request, announcing steps to resolve the dispute. It also said actions by Caliplay in Mexican court proceedings contravene contractual agreements under an agreement established in 2014.

When announcing its full-year results in March, Playtech has made further claims against Caliplay in terms of unpaid fees. 

In its latest update, Playtech reiterates that Caliplay remains a highly important customer and it continues to maintain an open dialogue to discuss a path forward. This is despite the alleged fees owed to Playtech remaining uncollected. 

Playtech adds that while it believes it has visibility over substantially all revenue generated by Caliplay, and can confirm Caliplay continues to perform strongly, it has been unable to obtain full financial information from Caliplay during the period. 

As such, the revenue generated from the additional B2B services element of the agreement is partly based on an estimation. This, it adds, takes account of prior trends and information provided.

Growth in Q1 was driven by a rise in revenue from the core Publishing business at Better Collective. This is despite tough year-on-year comparisons in the US. Meanwhile, Paid Media revenue remained flat year-on-year, helped by the Skycon acquisition in April last year.

Better Collective also hailed its product diversification efforts within North America. While revenue in the region fell in Q1, it said this strategy is supporting longer-term growth plans in the market.

Add in the acquisition of sports betting media company AceOdds after the end of Q1, and Søgaard said there is plenty to be positive about. Incidentally, the AceOdds deal led Better Collective to increase its guidance for the full-year.

“In Q1, we saw good performance across all markets. Europe and Rest of World (RoW) showed outstanding performance with an impressive 20% growth of which 5.0% was organic,” Søgaard said. “This achievement was fuelled by a widespread impact across markets, facilitated by our owned and operated channels alongside strategic media partnerships.

“Turning attention to the North American market, we are delighted with the progress made in Q1. Our commercial position has never been stronger with active partnerships established across all major players in the region. We achieved notable successes during the North Carolina state launch and the Super Bowl events.”

Publishing growth pushes revenue up in Q1

Breaking down the Q1 performance, growth in the Publishing business was the main reason behind the overall revenue increase.

Publishing revenue, derived from proprietary owned and operated sports media and media partnerships, climbed 12.0% €66.3m. This increase came despite tough comparisons in the US where Q1 2023 included two states launches with upfront revenues through cost per acquisition (CPA)-based contracts. This year the state launch of North Carolina was based on a mix of revenue share and CPA.

Furthermore, Better Collective said segment revenue share income was hit by a lower-than-expected sports win margin. In addition, it noted more than 10.0% fewer football matches in major leagues across Europe and South America compared to 2023.

Turning to the Paid Media business, revenue here remained level at €28.7m. This segment draws revenue from paid advertising on search engines and advertising on third-party sports media.

This, Better Collective said, represents a solid performance by the business, seeing as it had similar high comparisons to the Publishing segment from last year. 

Better Collective hopeful on North America despite revenue dip

Looking now at geographical performance, around 64.0% of all revenue came from Europe and RoW. Revenue here jumped 20.1% to €61.0m, despite fewer football matches and a lower sports win margin.

As for North America, revenue declined 8.4% to €34.0m. This, Better Collective said, was as impacted by an ongoing revenue share transition and the comparison from the two state launches in Q1 2023.

However, despite the decline, Søgaard said remains upbeat on longer-term growth prospects in the region.

“We increased our investment in revenue share, which will set us up well for sustained revenue in years to come,” he said. “The mix of new depositing customers (NDCs) on revenue share versus upfront CPA was similar as in previous quarters.

“Additionally, our expansion into high-level media has proven successful following last year’s acquisition of Playmaker HQ.” This purchase is not to be confused with Playmaker Capital, which the group also acquired in November last year.

On the subject of NDCs, group NDC figures in Q1 surpassed 450,000, with more than three-quarters sent on revenue share contracts.

Better Collective also noted that revenue share accounted for approximately 45.0% of total Q1 revenue. Some 31.0% came from CPA, 4.0% subscription sales and 20.0% other income.

Net profit slips as spending increases in Q1

Turning to spending, expenses were higher across the board during Q1. The main outgoing for Better Collective was staff costs at €28.7m, up 35.4% year-on-year. Other major areas of costs include revenue expenses (€27.9m) and external costs (€9.4m).

After also accounting for depreciation, amortisation and impairment, special items and net finance costs, this left a pre-tax profit of €10.3m, down 62.3%.

Better Collective paid €2.7m in tax, meaning it ended Q1 with a net profit of €7.6m, a drop of 62.0%. In addition, EBITDA declined 10.2% to €29.0m.

Reasons for optimism 

As noted, last week’s €42.0m acquisition of AceOdds saw Better Collective raise guidance for its full-year. AceOdds was founded in 2008 and, based in the UK, offers betting tools, reviews, odds and streaming programmes.

FY24 revenue is now expected to fall between €395.0m and €425.0m. This is higher than the initial guidance of €390.0m to €420.0m. In addition, EBITDA before special items is set to be between €130.0m and €140.0m, compared to €125.0m to €135.0m.

“I would like to round off by thanking all my colleagues at Better Collective, now also including the full Playmaker Capital group,” Søgaard said.

“As a co-founder it is a true pleasure being surrounded by so many ambitious colleagues that have taken ownership of our strategy and vision and continue to deliver strong results.”

The NSW TAB (Totalisator Agency Board) was formed in 1964 after the Victorian TAB in 1961, which legalised off-course totalisator betting in Australia.

Tabcorp was listed on the ASX by the government of Victoria in 1994. In 1999, Tabcorp acquired Star City Holdings (subsequently demerged in 2011 to form The Star Entertainment Group). In 2000, Tabcorp purchased Structured Data Systems, which developed wagering, Keno systems and animated games.

Today, Tabcorp has 805,000 active digital customers and over 4,000 TAB venues. The company has an overall Australian wagering market share of 34.6% and digital market share of 24.5%. In FY2023, TAB reported revenue of AU$2.43bn and net profit after tax of AU$84.3m.

Over the past 12 months, Tabcorp’s valuation has fallen 40% to AU$1.52bn, with revenue down 5.1% in the first half of the financial year due to increased competition and tighter win margins. Flutter’s Sportsbet continues to dominate the Australian online wagering industry, with 45% digital market share and 1.1 million active customers (Australian Financial Review).

In March, Tabcorp announced that Adam Rytenskild had resigned as CEO and managing director. Following the resignation, Tabcorp chairman Bruce Akhurst has assumed additional responsibilities while the search for a permanent successor is underway. A well-experienced industry leader with a history of product innovation, effective marketing and cost management could stimulate Tabcorp’s growth.

Tabcorp’s executive search made us reflect on some of the great leaders in the industry – Cormac Barry, Sam Swanell and Breon Corcoran.

Cormac Barry

Barry has over 25 years of experience in online B2C, online B2B and retail across various sectors. In the wagering industry, Barry began his career at Paddy Power as head of online in 2000.

During his nine years there, he played a key role in developing and expanding PaddyPower.com. This became the model for Flutter’s global growth. Paddy Power Betfair rebranded as Flutter Entertainment in March 2019.

Paddy Power acquired a 51% stake in Sportsbet in May 2009 and gained full ownership in March 2011. Barry transitioned to Sportsbet in 2009 and was appointed CEO in 2011. At that time, Sportsbet had revenue of AU$204m and EBITDA of AU$43m (21% EBITDA margin).

Over the next seven years, he transformed Sportsbet from a startup into Australia’s leading online wagering brand. He pioneered highly effective digital marketing strategies, increasing Sportsbet’s overall advertising spend from AU$40m in 2013 to AU$156m in 2018. Sportsbet’s advertising spend with Google and Facebook increased 8x over the five-year period from 2013 to 2018.

Under Barry’s leadership, Sportsbet also innovated on product, becoming the first Australian operator to introduce Same Game Multis in 2016 – known as parlays in the US or accumulators in the UK. This innovation gave Sportsbet an almost two-year lead over its competitors.

Today, Flutter’s expertise in risk management and trading continues to provide a competitive edge in multis. Multis are a higher margin product, contributing to Sportsbet’s margin expansion throughout Barry’s tenure.

By the time Barry left in 2018, Sportsbet’s revenue had grown nearly four-fold to AU$766m, and EBITDA six-fold to AU$262m with a 34% EBITDA margin.

Sam Swanell

Swanell founded PointsBet in 2015. He built the business into a major operator in Australia and took on the largest global operators in the US when the market opened up in 2018. He ultimately sold the US business to Fanatics in 2023 for US$225m (around AU$336m). Today, the Australian business has around 5% market share (Australian Financial Review) and is valued at AU$150m.

Swanell started his wagering career at Tote Tasmania, directing all revenue channels. I met him nearly 20 years ago and was immediately impressed, hiring him as the COO of the TomWaterhouse brand in 2009. At TomWaterhouse, Swanell was instrumental in rapidly growing the business.

Drawing on his experience at Tote Tasmania and TomWaterhouse, Swanell launched PointsBet and immediately differentiated the brand on product, with a novel spread betting model (points betting) that gives customers a greater reward if the margin of victory in a game is larger and vice versa.

Swanell’s ability to quickly gain market share in Australia’s highly competitive environment is an incredible feat. Someone with an entrepreneurial approach like him could reinvigorate Tabcorp through technological and product improvements.

Breon Corcoran

Corcoran drove huge success at Paddy Power, Betfair, and then the combined Paddy Power Betfair. He left before the company’s rebrand to Flutter Entertainment.

Corcoran spent 11 years at Paddy Power and was COO for the last year and a half. He was then CEO of Betfair for nearly four years. In February 2016, Corcoran was instrumental in the £7bn merger between Betfair and Paddy Power. He was then appointed as CEO of Paddy Power Betfair in 2016, a position that he held for two years.

After leaving the company, Corcoran was the CEO of WorldRemit for four years until January this year, when he was appointed as CEO of £3bn trading platform, IG Group.

Mike McTighe, IG Group Chair, said Corcoran had sufficiently proved himself for the role.

“He is a proven leader of high performing teams within multinational organisations, with an ability to deliver results for all stakeholders.”

While the specific leaders discussed above are not available for the role, finding the right leader for an organisation is the chairman’s most crucial responsibility.

If Tabcorp can appoint the right CEO, it has a huge opportunity to leverage its over 800,000 customers and one of the strongest brands in Australia.