Suitors line up bids in A$1bn Western Australia TAB battle
Entain, Tabcorp and Matthew Tripp all reportedly interested in racing concession as newly resumed bidding war hots up
Entain and former BetEasy CEO Matthew Tripp have reportedly submitted competing bids for the A$1bn Western Australian TAB business, according to Australian media.
Reports in The Australian have credited the duo with interest in the sole remaining state-owned wagering business, a bidding process which began in 2020, but was later curtailed by Covid-19.
At the time, officials in Western Australia were reportedly in advanced discussions with Australian heavyweight Tabcorp but these were later discontinued when the process was suspended.
It has been reported, although not confirmed, that Flutter-owned SportsBet and Apollo Global Management may also be lining up bids.
The tender process resumed in October 2021, following the relaxation of Covid-19 restrictions, however the parameters of the sale process were changed due to fluctuations in “market conditions” arising from the pandemic.
Under the initial process Western Australia’s racing industry were set to receive a chunk of TAB’s annual cashflow to support the sector.
This has since been scrapped and the Western Australia government will pass on the proceeds to Racing and Wagering Western Australia (RWWA), while the new Western Australia TAB owner will retain all future earnings.
At the time, Western Australian Racing and Gaming Minister Reece Whitby blamed the impact of the pandemic on the sale process.
“The underlying rationale for a sale still exists, with the Western Australian TAB operating in a highly competitive and rapidly changing environment.
“A new market process provides the opportunity for the State and RWWA to adjust our approach in response to changes to market conditions since the onset of COVID-19,” Whitby added.
A consultation process is currently underway between the Western Australia government and RWWA with formal negotiations expected to kick off in early 2022.
The Western Australia government has committed to completing the sale by the latter half of 2022.
The prospective bidding war represents something of a déjà vu moment for the Australian gambling market, with all of the prospective bidders formerly credited with competing bids for Tabcorp’s highly coveted wagering and media division.
Tabcorp began sale proceedings in February 2021, with Entain, Apollo and Matt Tripp’s BetMakers all submitting billion-dollar bids.
However, the process was aborted just three months later, with Tabcorp deciding to pursue a demerger process to separate its lotteries and keno business from the wagering and media division to create two separate ASX-listed businesses.