The drawn-out process of awarding a Victorian licence is in the final stages and Tabcorp is not the only betting operator vying for a Victorian wagering concession. Even though betr, Sportsbet, and Entain dropped out of the race, reports now say that Greek company Intralot is seriously considering throwing its hat into the ring.
Intralot Lost $50 Million Operating in Victoria
Intralot is a private betting operator that partners with the public sector to organize legal wagering in 39 regulated jurisdictions, including Washington DC and Illinois. The company is headquartered in Athens, employs 1,700 people and had a $660 million turnover in 2022.
Intralot used to operate in Victoria too. The Athens-based business was a big player in the Victorian gaming industry, which it entered on July 1, 2008. However, in only seven years of operations, the company was said to have lost more than $50 million. In 2014, Intralot stopped operating in Victoria and later took the state to court, claiming it wasn’t offered a level playing field and that the Victorian government favoured Tattersall’s.
The 20-Year License Could Cost Up to $900 Million
The process to award a Victorian wagering concession has now been running for more than a year. Tabcorp got the green light to operate in 1994 its licence was renewed in 2011 for an advance payment of $410 million.
Getting the Victorian wagering concession now will be more expensive, though. JPMorgan estimates that whoever gets the licence will have to pay a figure in the region of $800 million, while financial services firm Taylor Collison predicts the value of the licence will be in the $600 million -$900 million range. The Victorian government will have the final say on how much the 20-year wagering concession will cost.
Decision by November
Tabcorp was the only candidate for the licence until recently after Ladbrokes and Neds owner Entain dropped out of the race as the company wasn’t sure it would be given control of Tabcorp’s customer database in Victoria.
betr and Sportsbet expressed interest initially too. Both have withdrawn from the bidding process, though. News Corp-backed betr is reportedly up for sale, while Sportsbet’s interest has cooled even though it was expected Australia’s largest betting operator would lodge a bid for the Victorian licence.
Tabcorp and Intralot, as well as other interested parties, will find out who the next Victorian licence-holder will be by October or November.
