State-owned betting agency the TAB produced a $109 million profit in the year to June, but privatisation plans have been paused.
State-owned betting agency the TAB produced a $109 million profit in the year to June, but privatisation plans have been paused.
The TAB’s margin on betting turnover was up 1.5 per cent to $310.2 million, according to the Racing & Wagering WA annual report.
The slight improvement helped RWWA lift revenue by $20.5 million to $450 million.
Those figures include a levy paid by national and international wagering operators betting on Western Australian competitions.
Revenue from the levy was up 15 per cent to $93.2 million.
“It should be noted that a portion of the $12.2 million increase is a result of the COVID-19 pandemic, due to comparative wagering products including a majority of national and international sports and international racing being unavailable from March to July 2020,” the annual report said.
“This left the WA product with reduced wagering competition during the period resulting in a favourable increase in national wagering market share.”
The ongoing process to privatise the TAB was paused.
“[N]egotiations of the sale were well progressed and a preferred bidder was selected,” the report said.
“The WA government and RWWA both engaged productively to fully explore the potential for a mutually beneficial transaction.
“The ongoing uncertainty surrounding the impacts of COVID-19 was a major impediment to progressing negotiations.
“As a result, an announcement was made on August 7 2020 that all parties had agreed to disengage from the process until further notice.
That comes after legislation approving the sale was passed in September 2019.
“The sale of the WA TAB was designed to test the market with the aim of providing the state’s racing industry with a reform package, to secure its long-term financial future,” the report said.
“It was determined that a sale in the current economic climate would not provide the best possible outcome for the industry.
“With the sale on hold, RWWA will continue to actively manage and drive performance of the WA TAB business in the long-term interest of the state’s racing industry.
“Investment into the WA TAB next financial year will be important post-COVID, while the sale process becomes more understood.”
Treasurer Ben Wyatt said the sale would likely be re-engaged by a later date.
“The State and RWWA have engaged productively with Tabcorp to fully explore the potential for a mutually beneficial transaction," Mr Wyatt said.
“The sale process was advanced when COVID-19 impacted RWWA and Tabcorp in mid-March.
“The ongoing uncertainty surrounding the impacts of COVID-19 are a major impediment to progressing negotiations.
“All parties have agreed to re-engage at a later date when the focus of Government and the industry isn’t so heavily weighted toward the COVID-19 response.
“RWWA will continue to actively manage and drive performance of the WA TAB business in the long-term interest of the local racing industry.”