Tabcorp Holdings

Mission: “Its our mission to drive commercial success through championing social and sustainable ways to play”

Hi everyone, I’m very happy to be given Tabcorp holdings as part of our Ass#1, as they are well-known to the Australian public community in the gaming industry through various areas of product offerings, also what they have achieved in their economic and business realities. I have briefly outlined below about Tabcorp and what they have achieved from their financial year of 2018, which I am quite impressed.

About Tabcorp

Tabcorp is an Australian gambling entertainment company, which was created in 1994 with a mission to support the racing industry through multiple venues such as racecourses and stadiums to pubs and clubs. To today, delivering three business cores, Wagering and Media, Lotteries and Keno and Gaming Services. Visit Tabcorp’s website:

First Impressions

When I was first given Tabcorp Holdings, I was very happy to study a well-known company in Australia (to my understanding). I know they’ve been around for a long time since 1994 when they were first created in pubs such as Collegians Club in Wollongong and the local Corrimal TAB building where my mate Steve and I always bet on the horses or the greyhounds for a weekend punt. However that’s all I knew about Tabcorp, a betting company and today still thinking what else could it be doing apart from being a betting company? However reading the latest 2018 annual report has given me a deeper understanding about Tabcorp, which I’m surprisingly fond of. I’m not a betting type of person, however I have no issue of other’s gambling as I can see how Tabcorp contributes to the community.

Collegians Club, Wollongong Source: Google Maps

My insights and Key Concept Question’s (KCQ) on the 2018 Annual Report

I was delighted when opening up the 2018 Annual Reports. The first thing that captured me was that Tabcorp combined with Tatts group in December 2017. Becoming more of a ‘diversified gambling group’. I was wondering, why did they combine? Who are their competitors in the industry that may be a threat? With Tabcorp becoming more a ‘diversified gambling group’ they now have three core product offerings. Wagering and Media (Tab, UBET, Sky Racing), Lotteries and Keno (The Lott, Keno) and Gaming and Services (TGS, MAX, eBet), I can only expect them to compete with the growing demand of the digital world. However this not their only challenge in the industry, I will talk more about this later.

This is the company’s overview from the 2018 Annual Report.

  • 3 million registered customers
  • $3.8 billion of revenue FY18
  • $7.2 billion of net assets
  • $2.8 billion of taxes and racing industry funding – I thought what is it and why is it important?
  • 9000+ venues- the biggest retail footprint
  • More than 5000 employees

With the overview, I thought about Martin’s discussion on having a deep understanding on economic and business realities. I wanted to dive further into the Annual Report to find out more and understand what sort of challenges are they facing as a billion dollar company?


I was astounded on how much they went through for FY18. Firstly, Tabcorp’s Sun Bet exit with News UK being announced in July 2018, paying $71 million to exit due to producing below expectations and Luxbets closure in December 2017 as Tabcorp did not see them as part of their long term strategy with Tatts. Hence Luxbet’s loss of $13 million earnings before interest and tax for the past financial year. So why were both businesses unsuccessful and losing money? You would think they don’t lose money because it’s the gambling industry?

Tabcorp to pay news corp:

Tabcorp to shutdown luxbet:

What else could be a challenge for Tabcorp? I had a feeling it would be regulatory environments with licencing and so on, but since studying law and understanding how frequent law changes in jurisdictions, it would be one factor I believe they have to stay on top of in their business and the economy. After reading what recently came into affect on their annual report, I wondered how effective is Tabcorp to adapt to the changes such as?:

  • Federal legislation passed by banning synthetic lottery products
  • Wagering point of consumption tax regimes announced
  • New advertising restrictions and stronger consumer protections introduced

I needed to know what’s their strategy to overcome this challenge?

The more I dive into their annual report, the more I want to find out to understand, how do they overcome these challenges, to what sort of strategies do they have in place to keep the momentum growing, to providing new product offerings to consumers.

I’m greatful for having Tabcorp for my Assessment #1 and overall becoming more confident in understanding the value’s and operations of the business.

Feel free to leave me comment and some feedback! I’d love to hear your thoughts on this.

15 thoughts on “Tabcorp Holdings

  1. Hi Andrew, very thorough and clear delivery. I enjoyed reading your post and getting to know TabCorp a little better. 3 million customers is a massive share of the market, the value of assets is insane. Best of luck with the company this semester.


  2. Hi,
    Your blog was so informative! You made sure that after reading it we will get to know all the details of your company. By the way, I also have a gambling company it is Aristocrat Leisure.


  3. Hi Andrew, a neat overview of Tabcorp, I was following it pretty well until your challenges part. I know nothing about the gambling industry and you lost me at this point. As I didn’t have the background of SunBet or Luxbet before that part or how they all related to the Tatts Group I was a bit confused. The advice I was given that even though you have the link, not everyone will be inclined to follow them or they might not work. I have links in mine that I’m not confident with. So the advice is to give a summary of the content of the link as well. When you bring in another company to the narrative, be sure to provide the background as to why they are there.
    What would have helped me to understand this better was a bit more background of Tabcorp, how they came into being, how they merged with Tatts and why? What is a diversified gambling group and how that affected Sunbet and Luxbet, who were they and why they were important. Also when you raise a question like the digital impact and the amount of money paid in tax etc be sure to circle back and refer to it later on. I’d like to know about how much tax they pay and the impact on their, business, hopefully you can help me find out? Cheers Paul


    1. Hi Paul, I really appreciate your feedback about sunbet and luxbet. This gives me the direction on elaborating more about them for myself and others. If you have anymore feedback, that would be great!

      Liked by 1 person

  4. Hi Andy,

    Just thought I’d let you know you are in my top 3 blogs! I’ve found your blogs about Tabcorp really interesting and helpful having a gambling company myself so thank you!



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