Here you go..Victoria’s monopoly on-course and retail betting...

Here you go..

Victoria’s monopoly on-course and retail betting market could soon be a thing of the past with companies asked to pitch ideas on how to ‘innovate’ in the wagering sector.

THE Victorian wagering market could be radically shaken up, with the government considering options including a 30-year licence and multiple successful bidders under the current tender process.

ASX-listed gaming giant Tabcorp last won the rights to run betting operations in the state in 2011, paying $410m upfront for the 12-year licence, plus ongoing betting taxes.

But with that licence to come up for renewal in 2024, the government has floated the idea of awarding a licence which runs for 12 years — the currently legislated term — or extending that to 20 or even 30 years.

It will also consider issuing up to three licences, rather than one.

Punters at Royal Randwick Racecourse celebrating a COVID safe Melbourne Cup Day.

Punters at Royal Randwick Racecourse celebrating a COVID safe Melbourne Cup Day.

Interested parties have been invited to lodge their expressions of interest in the process by 2pm on May 6, with the government intending to have the new operators in place on August 16, 2024 — the day after the current contract period expires.

The government would not release a list of interested parties, and Tabcorp itself was tight-lipped when contacted by News Corp Australia.

“Under the protocols of the EOI process we are restricted from making any comment,’’ a Tabcorp spokesman said.

The tender documents indicate the size of the prize, however, and the government’s opinion that the betting industry can continue to grow.

“Victoria’s offcourse retail network generated $2.28bn in turnover in 2018-19, while on-course turnover was in excess of $240m,’’ the tender documents state.

“While already significant, there is opportunity for a new licensee(s) to innovate the on-course and retail offerings and grow these segments of the market further.’’

In addition to the figures above, phone and internet betting brought in another $2.79bn, accounting for 53 per cent of turnover.

The government says it is considering a “range of reforms” to the current licence operations “in order to support innovation and growth in the Victorian wagering and betting market’’.

“In order to inform the new licensing framework, respondents are invited to express their interest in several licence model options through this process,’’ the tender documents state.

“The new licence structure, which is intended to be settled before the next stage of the licensing process, will provide the licensee(s) with the opportunity to develop and innovate its product, reach new customers and successfully compete in the market, while also meeting the state’s responsible gambling principles and ensuring a strong and viable Victorian racing industry.’’

Young men have almost doubled the amount they spend on gambling each month.

The government has also left the door open for any ideas tenderers may bring to the table, saying “Respondents are also provided with the opportunity … to propose any alternative licence model(s) and identify any other factors and terms, not covered by the options presented above (eg an exclusive betting exchange licence), that would increase the indicative premium or a respondent’s interest in a new wagering and betting licence.’’

The state government did not answer specific questions put to it around how many bids were expected and from whom, but said in a statement it was “exploring a range of changes to the current licence model’’.

“EOI responses will be assessed against the licensing process objectives, including maximising value while minimising harm, and will inform the government’s decisions about key parameters for the new licence, such as licence terms and number,’’ the statement says.

“The government expects short-listed EOI respondents to apply for a new wagering and betting licence later in the year.’’

While Tabcorp currently has the monopoly on on-course and retail venue betting in Victoria, the digital side of the business is highly competitive.