Tabcorp dumps UBET to push the TAB into new states

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 5 years ago

Tabcorp dumps UBET to push the TAB into new states

By Nick Toscano

The multibillion-dollar tie-up of Australia’s two biggest gambling companies is gathering pace, as Tabcorp this week finally pulls the trigger on the transition of Tatts Group’s struggling UBET retail betting shops and online wagering service into the well-known TAB brand.

Nearly a year after Tabcorp and Tatts sealed the mega-merger of their extensive gaming businesses across the nation, the combined entity on Monday formally abandons the UBET brand that has operated in Queensland, South Australia, Tasmania and the Northern Territory, where Tatts held exclusive retail betting licences.

Hundreds of UBET venues across Australia and hundreds of thousands of betting accounts will be rebadged as TAB.

Hundreds of UBET venues across Australia and hundreds of thousands of betting accounts will be rebadged as TAB.Credit: Dominic Lorrimer

The move means a rebrand of 1300 UBET outlets across retail betting venues and racetracks, and “several hundred thousand” UBET accounts on the internet and smartphone apps, said Tabcorp’s head of wagering, Adam Rytenskild.

Their new name, TAB, is Tabcorp’s wagering brand used in Victoria, New South Wales and the Australian Capital Territory.

“UBET has been in decline for some time – at least five years,” Mr Rytenskild said. “This is a really important milestone for us, putting our brand into those states.”

 Tabcorp's managing director of wagering, Adam Rytenskild (right).

Tabcorp's managing director of wagering, Adam Rytenskild (right).Credit: Simon Schluter

Mr Rytenskild said this week’s move from UBET to TAB was the “first customer-facing” initiative to be executed so far in the colossal task of merging the Tabcorp and Tatts businesses, which run lotteries, digital betting services and exclusive retail betting in every state and territory except Western Australia.

Since Tatts Group renamed its TattsBet wagering division as UBET in 2015, the brand has struggled to achieve widespread recognition and is widely considered an inferior wagering service to the TAB.

The overhaul of signage and other branding in UBET betting shops will be completed by March, the company said, while the rebranding of the digital betting app will take place on Monday, ahead of the next major event on the gambling calendar, the Magic Millions horse race on the Gold Coast next month. Tabcorp said UBET customers would remain on a separate technological system to TAB customers until after the 2019 spring racing season, when they would be migrated onto TAB’s platforms.

Advertisement

ASX-listed Tabcorp has told shareholders it expects the Tatts merger to deliver savings of $130 million a year by the 2021 financial year.

Loading

After years of subdued advertising compared to online gambling companies, Tabcorp has noticeably ramped up marketing efforts since the football finals and spring racing carnival in a bid to chase new customers. The push comes as its online-only bookmaker rivals – such as Sportsbet, BetEasy and Ladbrokes – brace for the impact of an incoming wave of new state-based taxes from January 1 next year, which are expected to pressure their profit margins and restrict their marketing budgets.

Gaming industry observers have suggested Tabcorp’s decision to increase its advertising spend had the potential to lessen the merger-related savings this financial year.

Mr Rytenskild said Tabcorp was pleased with how the combination with Tatts was progressing, but there remained a “long way to go”.

Most Viewed in Business

Loading