Thursday 3. November, 2016

ACCC Gives Green Light for Tabcorp’s Acquisition of Intecq

The Australian Competition and Consumer Commission (ACCC) has announced that they will not stand in the way of the acquisition of electronic gaming machine company, Intecq Limited by leading Australian wagering company, Tabcorp Holdings Ltd.

The consumer watchdog said that its review of the proposed $128 million acquisition focused on the supply of gaming and promotional management systems to gaming venues located in NSW and Victoria. It found that Tabcorp and Intecq were not closely related or close enough competitors in these areas to warrant a challenge to the proposal.

“Our inquiries with industry participants suggested that Tabcorp and Intecq are not currently close competitors for the supply of gaming and promotional management systems,” stated Rod Sims, chairman of the ACCC.

According to Sims, the watchdog also considered concerns over whether Tabcorp would misuse gaming and customer information that it gleaned from Intecq from venues that currently use its technology. After investigating the issue, it concluded that Tabcorp was unlikely to misuse the data with the aim of distorting competition due to the strict regulations that are already in place in the industry.

After discussions between the two companies began in April, Tabcorp announced in August that it plans to acquire Intecq in order to strengthen its gaming services and increase its earnings. Intecq, formerly known as eBet, services 1,200 licensed venues and more than 70,000 gaming machines across the country. Its gaming technology provides monitoring of gaming machines and loyalty program solutions, while Tabcorp supplies gaming machines to pubs and clubs, along with marketing and loyalty programs.

The ACCC has made it clear that they plan to begin an investigation of the proposed Tabcorp and Tatts merger once the parties have made their submissions.


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