Tabcorp has entered into an agreement to sell the eBet1 business to Venue Digital Technology for AU$62m (US$41.6m) in cash.
The sale to Venue Digital Technology, led by Frank Makryllos, is subject to the usual working capital and other minor adjustments. It is expected to result in a pre-tax gain on sale of approximately AU$39m on completion, and is targeted for completion by the end of 1H FY23.
A supplier of loyalty and tracking systems to gaming venues in Victoria and New South Wales, eBet generated EBITDA of AU$4.4m and an EBIT loss of AU$2m in FY22.
Tabcorp added that it would be eligible to receive a break fee of AU$3m – up to AU$10m in certain circumstances – where the agreement is terminated due to the buyer failing to obtain the necessary probity approvals or failing to complete the sale.
Tabcorp Managing Director and CEO Adam Rytenskild commented: “The transaction announced today allows us to simplify our Gaming Services business as we pivot to an integrity services model.
“This continues the urgent implementation of Tabcorp’s transformation strategy. We have strong momentum and bold ambitions to grow both our Wagering & Media and Gaming Services businesses.
“The potential sale of eBet was disclosed at the release of our FY22 results and we are pleased to have entered into the agreement swiftly and in line with our new strategic direction.”
Tabcorp also confirmed details of a new monitoring licence in Tasmania. The exclusive Tasmanian Monitoring Operator Licence was awarded to Max Regulatory Services (MRS) to monitor all Electronic Gaming Machines (EGMs) in hotels and licensed clubs in the state.
The licence is for a 20-year period commencing on 1 July 2023, with MRS to pay the Tasmanian Government an upfront Licence Fee of AU$2m, along with an additional AU$1m grant over the term of the licence to be paid into the Community Support Fund.
