Tabcorp and Racing Queensland Sign Deed of Understanding
Australian betting firm, Tabcorp Holdings Limited, and Racing Queensland have signed a deed of understanding in relation to the proposed merger of Tabcorp with its rival, Tatts Group. The aim of the agreement is to offer greater surety to Racing Queensland in relation to the benefits that the merger will potentially offer to the racing industry in Queensland.
Tabcorp has committed to increasing its capital investment across its retail and on-course betting facilities for UBET, its Queensland betting business. It has also guaranteed to increase its investment in technology, marketing and sponsorships.
“The proposed Tabcorp-Tatts combination is expected to deliver additional funding benefits to the racing industry and venue partners, which will flow to racing participants and industries across Australia,” announced David Attenborough, chief executive and managing director of Tabcorp.
“We are pleased to have signed this arrangement with Racing Queensland to support increased returns and provide more investment for racing infrastructure. The combined Tabcorp-Tatts business will also be better positioned to invest in product and channel innovation to enhance the digital and retail customer experience, and drive further growth for Queensland racing.”
The agreement is subject to the completion of the merger, which is reliant on competition and other approvals. If the agreement goes through, Racing Queensland has committed to increasing growth within the Queensland industry.
“Racing Queensland is committed to improving the financial sustainability and growth of the Queensland industry and generating better returns for our participants,” stated Steve Wilson, chairman of Racing Queensland.
“The majority of our funding comes from the Queensland wagering business, so this agreement is important to underpin future returns. With this agreement in place, the proposed Tabcorp-Tatts combination would be meaningfully beneficial overall to Racing Queensland and will improve the financial sustainability of the industry.”
April 16, 2017