Australian betting company Tabcorp will launch into British and Irish markets, tapping into a A$7B ($5.1B) online gambling industry, "after signing an offshore partnership deal with News Corp’s British arm that could spread to Australia," according to Sarah-Jane Tasker of THE AUSTRALIAN. The deal, announced just under a month after Tabcorp cut takeover talks with Tatts Group, "signals a first for Tabcorp as it looks to muscle in on a market dominated by its major global rivals including William Hill and Ladbrokes, which have aggressively pushed into the Australian market." The new venture, Sun Bets, "will combine Tabcorp’s wagering capabilities with News UK’s customer base and market-leading media assets, including The Sun newspaper and associated sports and racing products." The two groups "have been in talks for months as News UK looks to diversify its revenue streams and Tabcorp looks to enter new markets in a low-risk way, without a high level of upfront capital." The agreement "is structured as a revenue share arrangement with News UK undertaking internal and external media promotion of the business." In return, Tabcorp "will provide News UK with a share of the revenue from the new business each year." Tabcorp Managing Dir David Attenborough said, "This partnership provides us with the oportunity to create a leading online bookmaker in the U.K. market under the Sun Bets bran over the coming years and fits with our strategy of pursuing close-to-core international opportunities." Deutsche Bank Analyst Mark Wilson said that the deal was a "minor positive" for Tabcorp as it provided the company with a "relatively low-cost entry point into a much larger gambling market" (THE AUSTRALIAN, 12/11).
