Good find Flukey- was wandering when this would come through.
In the RWWA 2021 annual report
Annual-report-2021_vFA_lowres_SPREAD.pdf (rwwa.com.au), the Chair and CEO report provided a bit of background and reasoning-
Due to the acquisition of the Western Australian TAB fixed odds provider BetEasy by Sportsbet in May 2020, RWWA conducted extensive negotiations with fixed odds service providers to achieve more favourable commercial outcomes for the Western Australian TAB and, in turn, the state's racing industry. A number of options were assessed and RWWA is currently transitioning away from Sportsbet to bring fixed odds racing in-house and to implement a new platform for its sports betting.
The decision for RWWA to transform the management of the fixed odds operations forms part of a wider strategy to create greater financial benefits via long-term growth and increased competitiveness of the Western Australian TAB.
Further control over fixed odds product offerings will provide the business with greater flexibility and allow the delivery of a more agile product to our wagering customers.
With the focus on significant investment in the fixed odds product, a gross margin increase of 26 per cent and record high levels of fixed odds betting representing 37 per cent growth for FY2021 indicate a very positive outlook for the Western Australian TAB in the coming years.
Following the State Government announcement in August 2020 to put the sale of the Western Australian TAB on hold
due to the COVID-19 pandemic, RWWA has continued to actively manage and drive performance of the Western
Australian TAB business in the long-term interest of the Western Australian racing industry.
Although the State Government has not made any further decisions at this time, it is anticipated that options will be examined in relation to the future of the Western Australian TAB in FY2022. The State Government has committed to ensure that the industry will be consulted ahead of any final decision.
Other interesting facts on RWWA-
. Overall national wagering on Western Australian racing increased by 17 per cent to $3.8 billion in FY2021.
FY2021 delivered a strong performance with overall revenue from all sources up by $101.5M, resulting in a total of $551.7M comprised of $373.7M from TAB wagering, $118.9M from the Western Australian Racing Bets Levy, $35M from Point of Consumption Tax (POCT) and $24M from other items.
So I am assuming the benefit to BET would be 1.5% clip of the $373.3M-=$5.6M to BET annually.
