The NSW TAB (Totalisator Agency Board) was established in 1964 following the Victorian TAB in 1961, which marked the beginning of legal off-course totalisator betting in Australia. Fast forward to 1994, the government of Victoria listed Tabcorp on the ASX. In a strategic acquisition, Tabcorp acquired Star City Holdings in 1999, which was later demerged in 2011 to form The Star Entertainment Group. Further expanding its portfolio, Tabcorp purchased Structured Data Systems in 2000, adding wagering, Keno systems, and animated games to its offerings.
Today, Tabcorp stands as a significant player in the Australian wagering landscape. The company boasts 805,000 active digital customers and operates over 4,000 TAB venues across the nation. With a commanding 34.6% share of the overall Australian wagering market and a 24.5% share of the digital market, Tabcorp has shown robust engagement and influence. In the fiscal year 2023, the company reported substantial revenue of AU$2.43 billion and a net profit after tax of AU$84.3 million.
However, the past year has not been without its challenges. Tabcorp’s valuation has plummeted 40%, bringing it down to AU$1.52 billion. Additionally, there was a 5.1% drop in revenue during the first half of the financial year. This decline is attributed to intensified competition and tighter win margins. In contrast, Flutter’s Sportsbet has continued to assert dominance in the Australian online wagering market, securing a 45% digital market share and serving 1.1 million active customers.
The turbulence within Tabcorp’s top leadership became evident when Adam Rytenskild resigned as CEO and managing director in March. With Rytenskild’s departure, Tabcorp’s chairman Bruce Akhurst has taken on additional responsibilities while the search for a permanent successor is underway.
. The selection of a new CEO, particularly one with a track record of product innovation, effective marketing, and sound cost management, is seen as a pivotal step towards revitalizing Tabcorp.
In contemplating potential leadership, noteworthy industry figures such as Cormac Barry, Sam Swanell, and Breon Corcoran come to mind.
Cormac Barry stands out with over 25 years of experience spanning online B2C, online B2B, and retail sectors. His journey in the wagering industry began in 2000 at Paddy Power as head of online operations. Over his nine-year tenure, Barry played an essential role in developing PaddyPower.com into a significant online platform. Paddy Power Betfair, which rebranded to Flutter Entertainment in March 2019, owes much of its foundational success to his early efforts. Barry transitioned to Sportsbet in 2009 and was appointed CEO in 2011. Under his leadership, Sportsbet’s revenue soared from AU$204 million to AU$766 million, and its EBITDA surged from AU$43 million to AU$262 million by 2018. Barry pioneered effective digital marketing strategies and product innovations, such as Same Game Multis, which positioned Sportsbet as a leader in the industry.
Sam Swanell founded PointsBet in 2015, nurturing it into a substantial player in Australia and challenging global operators in the US market when it opened in 2018. The US wing of PointsBet was eventually sold to Fanatics for US$225 million in 2023. Today, PointsBet holds around 5% of the Australian market share and is valued at AU$150 million. Swanell’s career began at Tote Tasmania, moving on to the role of COO at TomWaterhouse, where he was crucial in scaling the business. His innovative spread betting model (points betting) differentiated PointsBet significantly in the market.
Breon Corcoran also marks an impressive track record. With 11 years at Paddy Power and nearly four years as CEO of Betfair, Corcoran was instrumental in the pivotal £7 billion merger between the two companies, later leading the combined entity, Paddy Power Betfair, from 2016 to 2018. Post-2018, Corcoran served as CEO of WorldRemit and currently heads IG Group, a £3 billion trading platform.
While these leaders are currently unavailable for the CEO role at Tabcorp, the company’s board recognizes the significance of sourcing an adept and visionary leader. A judicious appointment could leverage Tabcorp’s vast customer base and strong brand reputation to navigate the company towards a prosperous future.
In summary, Tabcorp’s journey, marked by significant acquisitions, market leadership, and transformative challenges, underscores the importance of strategic leadership in navigating the complexities of the wagering industry. The company stands at a crossroads, with the selection of a new CEO as a critical juncture that could shape its trajectory in the competitive landscape.
