Regulatory changes in Victoria, and the ongoing deregulation elsewhere, could cause problems for the the Australian gambling industry in the years ahead, Tabcorp (ASX:TBC) warned today.
But the company added that it was well-placed to weather the crisis – which is set to peak by 2012 when significant changes to Victoria’s gambling legislation will take effect.
Tabcorp told investors today that it will continue to seek up to $687 million in compensation from the Victorian Government on behalf of its shareholders, even though the Government has ruled it does not need to pay out compensation.
Meanwhile, increasing de-regulation in the rest of Australia has caused many smaller bookmakers to encroach onto Tabcorp’s business in Victoria and New South Wales, as they seek to exploit the tax differences between states.
But these moves will likely create a funding shortfall in the wagering market, the company added. Tabcorp called for gaming regulation at a federal level to close these loopholes.
But Tabcorp said its investment in new and existing casino properties, and its renewed focus on Keno, will help it survive the turbulent times ahead.