According to reports in Australian media, Tabcorp may be heading for serious disagreements with the hospitality and entertainment industry – particularly hotels, pubs, and leisure venues – over a key reform in its retail operations.
As reported by the Australian Financial Review, the operator, which is facing increasing competition from both major brands and new entrants, is planning to revise the commercial terms of its partnerships with a number of pubs.
At the heart of the changes is PubTAB, Tabcorp’s betting terminal installed in thousands of pubs across Australia. Citing anonymous sources, the Financial Review claims that Tabcorp plans to replace commission payments to pubs for hosting PubTAB terminals with a scheme focused on upgrades and marketing support.
Among the other proposed changes:
- Ending commission payments for new customer registrations;
- Eliminating payments to pubs when customers deposit money into Tabcorp accounts on-site;
- Introducing a minimum turnover threshold for bets placed via terminals in pubs.
In place of the traditional commission model, Tabcorp is offering to pay for renovations in pubs and hotels and invest millions in marketing campaigns, including special promotions. The company argues this will help attract new customers to venues with outdated infrastructure, but hospitality representatives are skeptical.
The Australian Hotels Association (AHA) fears that small pubs could suffer financially from the loss of commission payments. The AHA has already informed its members of Tabcorp’s proposals, although the operator has yet to publicly announce its plans.
The Financial Review adds that while the AHA acknowledges the proposed marketing initiatives may benefit some venues, it remains concerned about the overall financial impact of eliminating commissions and other payments.
This situation could reignite tensions between Tabcorp and the AHA, which previously clashed in 2023. At that time, AHA NSW (New South Wales) signed an advertising deal with Tabcorp rival Entain, allowing Ladbrokes Australia and Neds to advertise in its venues. Tabcorp saw this as a breach of its exclusive rights to offer betting in pubs, sparking a significant dispute.
Two years on, the in-venue betting segment remains a key market for Tabcorp. Just last week, the company received regulatory approval from Liquor and Gaming NSW to begin in-play betting trials via its terminals in pubs and clubs across the state.
However, Tabcorp now faces the challenge of balancing financial reforms in its relationships with pubs and clubs against its expansion plans and efforts to maintain its monopoly in this segment.
In 2025, the company is rolling out a new corporate strategy under new CEO Gillon McLachlan. He described the current state of the business as a “rebuild from scratch” following a $1.4 billion AUD loss in 2024.
McLachlan’s transformation plan aims to restore financial stability to TAB’s retail division and launch an upgraded digital betting platform capable of halting further market share losses to competitors.
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