Australian gaming giant Tabcorp Holdings Limited has announced the sale of eBet – a supplier of loyalty and tracking systems to gaming venues in Victoria and NSW – in a deal with AU$62 million (US$41.5 million).
Pending regulatory approvals, the buyer is a company called Digital Technology Pty Ltd, which is led by former Tabcorp executive Frank Makryllos, with the sale expected to be complete by the end of the year.
In announcing the sale, Tabcorp said it expects to generate pre-tax gain on sale of approximately AU$39 million (US$26.1 million) on completion, with eBet having generated AU$4.4 million (US$2.9 million) in EBITDA in the financial year ended 30 June 2022.
Tabcorp also announced Tuesday that it has been awarded a 20-year license commencing from 1 July 2023 to monitor all Electronic Gaming Machines in hotels and licensed clubs in Tasmania.
The company’s subsidiary, Max Regulatory Services, will pay the Tasmanian Government an upfront licence fee of AU$2 million (US$1.3 million) along with an additional $1 million (US$670,000) grant over the term of the licence, to be paid into the Community Support Fund.
“The transactions announced today allows us to simplify our Gaming Services business as we pivot to an integrity services model,” said Tabcorp Managing Director and CEO, Adam Rytenskild.
“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.
“We are pleased to have entered into the agreement swiftly and in line with our new strategic direction.”
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