In the Australian online gambling market, tough competition rising
According to JP Morgan, Tabcorp will continue to face sustained pressure from its competitors - Australian online gambling companies.
The firm reported that a recent tax increase in Australia had little impact on online bookmakers. Analysts predict that the local interactive gambling segment will continue to threaten the Tabcorp giant, despite the successful merger with the Tatts Group, which has brought additional cash and provided synergy to the company's business.
“Regulatory changes, taxes provided on the services, can slow the growth of corporate bookmakers' revenues,” - said JP Morgan analyst Donald Carducci, “ - but the risks of integration from a merger may change the situation.”
The new tax applied to income received through bets, entered into force on January 1st. Thus, bets will be taxed at 15% in the Australian Capital Territory, South Australia, Western Australia and Queensland, while New South Wales tax set to 10%, and Victoria to 8%.
It is expected that taxes will put pressure on the profit margins of corporate bookmakers and limit their marketing budgets, which, according to Carducci, gave Tabcorp the opportunity to apply new methods to attract new casino customers.
Suggested Reading - Wakayama plans to open a casino resort in 2024