Tabcorp agree $150m settlement with Racing Queensland

Finance News

Tabcorp Holdings announces the conditional settlement of litigation with Racing Queensland and the impact of proposed reforms to the Queensland wagering industry announced by the Queensland Government.

These legislative reforms, when implemented, will level the playing field by ensuring Tabcorp’s
wagering tax and racing product fee obligations in Queensland are the same as Northern Territory licensed online wagering operators.

Tabcorp and Racing Queensland have entered into an agreement to settle the legal proceedings. Tabcorp will pay Racing Queensland and the Queensland Government a combined total amount of $150m (ex GST). Note that the Company has disclosed a contingent liability (as at 31 December 2021) of $75m post tax ($108m pre-tax), in connection with this litigation.

Tabcorp Managing Director and CEO Adam Rytenskild said: “Online betting has changed the market substantially since TAB’s licences were issued. On a relative basis, TAB currently pays double the fees to the local racing industries compared to other wagering operators. Going forward we will all pay the same in Queensland. I commend the Queensland Government for delivering fair and much needed reforms that bring the wagering market into line with the modern economy.