Digital a strong performer in Tabcorp first quarter

The Australian online and land gambling group Tabcorp published a fiscal Q1-2016 trading update Thursday, reporting that group revenues for the three months to 30 September 2015 were A$543.5 million, up 1.1 percent on the prior corresponding period, with digital turnover up 13.1 percent to A$900.3 million.

However Luxbet turnover was down 1.7 percent at A$172.4 million, and retail turnover declined 0.4 percent to A$1,637.8 million.

Total Wagering turnover was A$3,102.2 million, up 3.2 percent year-on-year. Wagering revenue growth was also impacted by a strong sports yield performance in the prior corresponding period.

Gaming Services revenues were A$26.4 million, up 5.2 percent.

Keno revenues were A$55.8 million, up 2.8 percent.

Tabcorp chairperson Paula Dwyer used the opportunity to again call for federal government intervention in overhauling the rules for the gaming industry, including those relating to advertising.

Dwyer claims there are too many gambling adverts, and she’s also concerned about how ads are regulated differently in each state and territory, saying that gambling advertising across Australia last year was up 34 percent at A$89 million.

She also proposes a single, national rule on the offering of credit by bookmakers and says she believes the government’s review of illegal online wagering could help provide a level playing field for all gaming operators.

Returning to an issue that clearly bothers her, Dwyer again addressed in-play betting , opining that live betting on sports was originally intended by lawmakers to be permitted only in a retail wagering outlet or by telephone. However, online bookmakers had since started offering the genre through digital apps, exploiting the microphone-on loophole.

The Tabcorp chairperson told shareholders that the threat of unlicensed offshore online operators should be countered:

“We believe wagering operators should be licensed in Australia if they are to take bets from Australian residents,” she told shareholders.

“This would largely address the problem of unlicensed offshore operators, whose activities pose a threat to racing and sports integrity.”