TATTS HAS COMPETITION FOR EXCLUSIVE LICENCE
Written on the 21 January 2014
TATTS Group (ASX:TTS) is in danger of losing its right to bricks-and-mortar exclusivity for horse racing betting after Racing Queensland (RQ) opened an expressions of interest prospectus for the sector.
TTS, which pays $131 million to the Queensland racing industry each year for the privilege, loses its exclusive rights to control betting on the ground at pubs, clubs and racetracks in Queensland on June 30.
The Brisbane-based company is locked in negotiations with Racing Queensland regarding the agreement, but it will soon have competitors in the space, as RQ will give consideration to all options, including sole and multiple operator arrangements.
TTS holds a race wagering licence until 2098, so will remain at tracks regardless of the outcome of this process.
The deadline for submissions is February 28. RQ has asked for details on the investment participants will make in the industry, a vision for wagering growth, and a robust distribution network.
TTS, which is trading up 1.16 per cent at $3.045 per unit this afternoon, released a statement to the ASX saying it remains in negotiations with Racing Queensland regarding the exclusivity period.
Queenslanders wager $515 million on racing events in the state each year.