Tabcorp to bring live sports betting into pubs and clubs in New South Wales pilot program

Australian gambling company Tabcorp Holdings said it will launch live, in-play betting through its app in licensed pubs and clubs, starting with a pilot in New South Wales, marking the first time digital live sports bets can be placed inside venues nationwide.

The rollout, which begins in two pubs on Thursday and will expand to 20 locations in coming weeks, allows customers to activate live betting features by tapping their phones on in-venue terminals, part of what Tabcorp calls its "tap-in-play" service.

“I believe this is the future of wagering,” Chief Executive Gillon McLachlan told investors at the Macquarie Australia Conference.

The initiative, which leverages Tabcorp’s retail licences across 3,700 venues in five states and territories, aims to revitalize its bricks-and-mortar business and boost its small share of the in-play betting market, which accounts for just 4% of turnover, compared with 54% in the United States.

McLachlan said the new product would not replace existing electronic betting terminals and that future updates may include personalized offers based on location and team preferences via opt-in features.

“The friction is taken out. We don’t need to own the AFL rights, we don’t need to own the NRL rights. We can talk through your screen, through data,” he said.

The move comes as Australia’s gambling landscape faces increasing regulatory scrutiny. Rival bookmaker Sportsbet, owned by Flutter Entertainment (FLTRF.L), is facing a class action lawsuit in Victoria over its “Fast Code” service, which allegedly enabled illegal in-play bets on sports matches.

“We believe that Sportsbet’s use of the Fast Code service is not just an attempt to circumvent important laws aiming to prevent gambling harm, it is also illegal,” said Maurice Blackburn principal Elizabeth O’Shea, who is leading the legal action.

While federal reforms targeting gambling ads during live sports have stalled until after the next election, New South Wales is moving ahead with restrictions. The state recently announced a total ban on gambling ads across public transport, expected to remove over A$30 million($19.37 million) in advertising from trains, buses and stations in the next 12 months.

This is McLachlan’s first major strategic move since joining Tabcorp in August. His tenure has so far included around 300 job cuts, including another 50 this week, reducing the workforce to 1,800. “I don’t sugarcoat,” he said. “I am clear with the staff that will be the end of the changes for a minimum of 18 months.”

Tabcorp reported an 11% rise in first-half revenue to A$1.3 billion($840 million), citing a new betting licence in Victoria. It marked the first time the company had met market expectations since spinning off its lotteries unit three years ago.

“People thought that’s a passive and old part of Tabcorp,” McLachlan said. “In an increasingly regulated world with a great partnership, we can think about changing structural economics and the way people think about retail.”