Tabcorp plans to invest in online poker

If laws change, Tabcorp will leap at the chance to trial online poker and cash in on the booming but controversial area of betting at cards on the internet.

Attenborough said the company had surveyed clients a couple of years ago and found that up to 50% of customers had tried online poker but it was unknown how many continued to play the game. Australian-based gambling companies are currently not allowed to offer online poker, but Australians are able to play on offshore websites.

An attraction to online poker for gambling companies are the margins they can earn, as they don’t have to spend on overheads for a physical space.

The Australian government has released an interim review of laws covering internet gambling, which proposes several changes including trialing tournament poker and allowing betting on the internet as a sport or event is in progress.

He said it was “sensible” that internet betting on live sports was allowed as people could already do it via the phone, in its retail outlets or through international websites. “It’s just not good for the customer to be betting online, the game kicks off, then a little sign comes up and says if you want to now have the next odds that are offered you must pick up the phone,” he said.

It’s unclear whether changes to the laws will be passed by Australia’s lawmakers, with the conservative opposition  saying it did not support “watering down” of the laws.

Tabcorp is one ofAustralia’s largest gambling companies and is seeing strong growth in gambling revenues through its internet channel. The company said in a recent third quarter trading update that wagering turnover via the internet was up 16% on year at us$ 488.7 million), and in the first half was up 19% on year at us$ 1 billion. To be sure, wagering through the company’s retail outlets is the main source of turnover, which is also growing.

Attenborough also said the company was preparing to launch its internet television, or IPTV, offering in coming months. “It’s the next generation of the way people will bet so we are making sure we’re at the forefront of bringing that to market.”

Despite Australia’s retail sector struggling as consumers save more of their money rather than spend, Tabcorp has seen its wagering revenues grow. In the third quarter wagering revenue grew 4.5% on year to us$ 374 million, and for the first half grew 2.8% on year to us$ 823 million.

“I think customers are spending because they’re actually enjoying the variety of what’s on offer,” Attenborough said, pointing out the company had invested “an awful lot of money” in its retail offering.