Tabcorp in talks to exit Sun Bets
Tabcorp is in negotiations with News Corp’s UK subsidiary to quit the pair’s Sun Bets online gambling venture.
Tabcorp, which this year cited Sun Bets’ poor performance as a factor in its 58 per cent slump in first-half profit, on Friday said it is still negotiating with News UK but that it has started talks with staff whose jobs are at risk.
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.