TAB outlets get online bets boost

TABCORP says bricks-andmortar outlets are benefiting from a new system that ascribes to them bets placed on mobile phones within their venues.

New Tabcorp wagering chief Adam Rytenskild said $200 million worth of online bets had been channelled through pubs, clubs and Tabcorp shops since the system was introduced a year ago.

Under the scheme, bets placed in TAB venues by punters on smartphones – rather than over the counter or using self-service machines – are identified and logged as bets made at the venue.

The venue then takes a cut of the commission.

Mr Rytenskild said the great success of racehorse Winx had fuelled interest from punters in the Spring Racing Carnival this year.

“[Digital commissions] are definitely accelerating. I know we are acquiring a lot more customers over the last month than previously,” he said.

Digital turnover attributed to TAB outlets was now running at 4 per cent of total retail turnover, but almost at 10 per cent in some venues, he said.

When Mr Rytenskild joined Tabcorp in 2000, the internet was in its infancy.

The company had introduced internet sports betting and was developing plans to offer tote betting online.

Retail – covering bricksand-mortar outlets – was easily the dominant channel. Now, digital betting is fast closing in on retail.

In the three months to September, retail betting was down 1.1 per cent from the same period a year ago at $1.5 billion. Digital betting was up 17 per cent to $1.1 billion.

Mr Rytenskild said the racing season was going well.

“There seems to be lot of positive energy around the carnival this year, which is great,” he said.

The digital commission model was strengthening TAB’s relationship with venues, he said, and the company was also spending $20 million at venues in Victoria over the next five years, primarily for new large-screen TVs.

TAB’s investment at venues was usually matched by investments from venue operators to improve aesthetics, he said.

Separately yesterday, National Australia Bank released research showing consumers ratchet up their spending on hospitality during the Melbourne Cup Carnival.

Spending at restaurants jumped 5 per cent on the Monday before the Cup each year compared with a regular Monday, NAB said, while spending at bars and bottle shops was expected to jump 20 per cent yesterday and today.

NAB consumer lending general manager Angus Gilfillan said an analysis of customer spending habits from the past two years painted a busy picture for retailers.

“Aussies love a celebration and that’s really reflected in the way we see customers using their cards and money in the first week of November,” Mr Gilfillan said.

“Based on what we’ve seen in previous years, we’re expecting there to be a frenzy of activity in the days and hours leading up to the Cup, as customers spend up at retailers and on hospitality, which is in stark contrast to an average weekday.

“Cash is the clear favourite among punters, as we traditionally see a 20 per cent increase in cash withdrawals across the Monday and Tuesday.”