- The Western Australian State Government has resumed the TAB sale process in order to ‘ensure the long-term stability of the state’s racing sector’
- Prior to COVID-19, the negotiations for the sale were well advanced with Tabcorp but was suspended due to the uncertainty
- A third of the sale of the WA TAB, which is reportedly worth around $1 billion, will be used by the Government for a dedicated racing infrastructure fund
- The State Government has agreed to start a fresh sale process at the request of the Racing and Wagering Western Australia (RWWA) board
- A new wagering operator is likely to be in place by the end of 2022 if an acceptable agreement is reached that is in the long-term interests of the sector and the state
The Western Australian TAB sale process has been restarted by the State Government in order to “guarantee the long-term viability of the state’s racing sector”.
Prior to COVID-19, the negotiations of the sale were well advanced with Tabcorp but suspended due to the uncertainty caused by the pandemic.
Changes in market conditions have required a re-evaluation of the most effective strategy to assist Western Australia’s racing sector in the future since the project was initially begun, the State Government said.
The latest news follows the initial announcement in October of 2018 that WA TAB was to be sold for up to $500 million, as part of a broader reform package, with 35 per cent of the sale proceeds to be set aside for a dedicated racing infrastructure fund.
WA TAB is now reportedly worth around $1 billion.
The State Government agreed to start a fresh sale process at the request of the Racing and Wagering Western Australia (RWWA) board in order to promote an independently viable and competitive sector.
The new procedure began today with the publication of an invitation for expressions of interest to the market, with private operators able to submit their credentials and give indicative bids.
A new wagering operator is likely to be in place by the end of 2022 if an acceptable agreement is reached that is in the long-term interests of the sector and the state.
Racing and Gaming Minister Reece Whitby said WA racing was an important industry and that the Government was working to ensure its sustainability and prosperity into the future.
“The underlying rationale for a sale still exists, with the Western Australian TAB operating in a highly competitive and rapidly changing environment,” he said.
“A new market process provides the opportunity for the State and RWWA to adjust our approach in response to changes to market conditions since the onset of COVID-19.
“We will continue to engage with all stakeholders and build upon the considerable work undertaken to date to provide certainty to all parties towards the end of 2022.”
RWWA said all bids would be measured against the benchmark of providing a sustainable future for the WA racing industry and that the sale would not proceed unless it was in the long term interests of the industry and state.
In September of 2019 a bill enabling the sale of TAB passed the WA Parliament that included reforms to the WA racing industry. The reforms included a 15 per cent point of consumption tax.