With integration of the old UBET states completed, Tabcorp says it is now poised to claw back lost market share in Queensland as the state’s racing industry braces for a $20 million black hole in January.
As part of the merger deed between Racing Queensland and Tabcorp, a “top up figure” was put in place for the first few years if Tabcorp’s payments under the existing product agreement fell short of an agreed target.
The top ups end in December and with last year’s figure being $19 million, it leaves a significant short fall for Racing Queensland to plug come January 1 next year.
Tabcorp’s managing director, wagering and media Adam Rytenskild said completion of the integration of the former UBET states comprising Queensland, South Australia, Northern Territory and Tasmania onto Tabcorp’s full digital offering should see results start to turn around.
Tabcorp is determined to win back customers in the Queensland market. Picture: AAPSource:AAP
“Frankly that business in Queensland has been in decline for seven years. Queenslanders haven’t had a TAB offering, be it UBET or Tatts Bet, over that time that’s been good enough,” Rytenskild said.
“So the opportunity now is to win customers back, welcome them back. (But) it takes time. You don’t do the migration, click your fingers and everyone jumps back through the door. We need to prove ourselves to punters.”
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Rytenskild said there was almost 600 regulatory approvals that had to be met before digital migration could be completed and that delayed the UBET states joining the TAB platform.
“We are now competitive digitally in Queensland and the other UBET states,” he said.
“Active customers are up 25 per cent post that migration. Our yields are stronger and have been for some time.
“But it’s going to take time to rebuild and win customers back. Now we’ve got a really compelling offer to talk to, you will see us really strong in (the future).”
Tabcorp’s Adam Rytenskild says the organisation’s relationship with Racing Queensland is strong. Picture: James CroucherSource:News Corp Australia
Queenslanders now have access to all of the products that were previously only available in New South Wales and Victoria. One of those new features is venue mode, which provides unique offers for customers at pubs, clubs and racetracks.
Despite ongoing legal action regarding Point of Consumption tax payments, Rytenskild described the relationship with Racing Queensland as strong.
“The legal disagreement will play out in time. The courts are potentially the right place for that to be resolved if we do have a difference of opinion,” he said.
“That doesn’t impact my relationship at all with Racing Queensland. We’ve got a very strong relationship with RQ, a strong relationship with the BRC and other clubs in Queensland.
“We’re just focused on punters to be honest and growing the TAB and SKY business and we’re very happy to be partners for many years ahead.”
Originally published as‘Black hole’ fear as Tabcorp works to woo punters
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