Tabcorp gears up to exit Sun Bet
Reading Time: 1 minute
Tabcorp, the Australia-based gaming operator is in talks with News Corp’s UK subsidiary as it wants to come out of Sun Bets online gambling venture.
Tabcorp has attributed its latest decision to the poor performance by Sun Bets. Last year, Sun Bets’ profit has fallen by 58 per cent. The company is still in discussion with News UK but it has already warned its staff about possible job cut.
The Australian company is just two-and-a-half years into a 10-year deal with News UK to operate the online bookmaker, which is linked to The Sun tabloid newspaper.
The agreement was only announced in December 2015, but Tabcorp acknowledged in October 2017 that Sun Bets had been performing below expectation and signalled a review of the business.
Sun Bets recorded a first-half earnings loss of $22.5 million, and Tabcorp chief executive David Attenborough in February said the unit had not been able to differentiate itself in a crowded marketplace of more than 400 operators.
Source: European Gaming Industry News