Tabcorp Holdings Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$3.90 | Rschm | Rqwpqjmz |
Tabcorp: A Win on Victoria but Physical Wagering Remains Challenged
Tabcorp has penned a new exclusive wagering license with the Victorian government. We had already expected Tabcorp to retain the Victorian license, but the terms are better than anticipated. We lift our fair value estimate by 5% to AUD 1.15 per share. The deal is a win for Tabcorp, with no joint venture partner, 20 years of exclusivity, and no industry funding obligations. Previously, the license involved a joint venture with the Victorian Racing Industry. The increase to the point of consumption tax, to 15% from 10%, will apply to all bookmakers, providing an equal footing between Tabcorp and online bookmakers such as Sportsbet.