Merger pleases

YESTERDAY’S approval of the Tabcorp- Tatts merger by the Australian Competition Tribunal has been welcomed by the Queensland racing industry, with an anticipated $ 20 million in extra funding to flow from the deal.

Racing Queensland had backed the merger, as had Racing NSW, while Racing Victoria, its media arm Racing. com and corporate bookmaker Crownbet opposed the deal.

The ACCC had also formally opposed the merger, but the ACT yesterday gave it the green light, meaning it now just needs the tick of approval from Tatts shareholders – which is considered a formality – to get across the line.

“The tribunal is satisfied in all the circumstances that the proposed merger would result, or would be likely to result, in such a benefit to the public that the acquisition should be allowed to occur,” ACT president Justice John Middleton said in a statement.

Timelines around the entities becoming one will take some time to become clear.

But inevitably, the UBET brand will now become ab- sorbed by TAB, or tab. com. au.

Racing Queensland had shown its approval of the merger in March, when it signed a deed of understanding with Tabcorp “to ensure the merger would bring meaningful benefits to the Queensland Racing industry”.

As part of that deed, Tabcorp committed to an increase in capital investment in the Queensland wagering business across retail and on- course wagering facilities, as well as investing more in technology, sponsorships and marketing.

Racing Queensland CEO Dr Eliot Forbes ( pictured) said yesterday’s decision provided certainty for the local industry.

“The majority of our funding comes from the Queensland wagering business, so this agreement is important to underpin future returns,” Forbes said.

PR