Sun Bets ceases trading after Tabcorp terminates partnership

Sun Bets ceases trading after Tabcorp terminates partnership

Friday, July 20, 2018 Posted by Joseph Streeter
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The termination cost Tabcorp approximately £40m

Tabcorp has confirmed that discussions have been finalised with News UK to terminate Sun Bets.

It means that the UK operator Sun Bets will cease its existence in the coming days, after Tabcorp made a £40 million payment to exit the joint-venture which it originally embarked upon in 2016.

Tabcorp Chief Executive, David Attenborough outlined: “The performance of Sun Bets has been below expectations and we do not expect a material improvement over the next 18 months. As such, we have reached an agreement with News UK to exit the   partnership.

“While we didn’t get it right, we have taken valuable learnings from the Sun Bets start-up process and operations which will inform our approach across our portfolio.”

After an immensely disappointing 2017, Tabcorp had outlined its agenda at the start of the year, which was to review the current state of play for the joint-venture.

In its update, Tabcorp detailed that it expects ‘significant costs items’ in its interim report to increase to approximately AUS $91 million (£52 million), with the company absorbing Sun Bets exit payment during the forthcoming trading period.

News UK retained optimism after the closure of Sun Bets, issuing the following statement: “The Sun is the number one newspaper and digital newsbrand in the UK and we have launched many successful brand extensions such as Sun Bingo and Dream Team. We are increasingly confident in the reach and power of the brand and will firmly remain in the betting and gaming business. We now look forward to executing our vision.”

Totally Gaming says: For a while it has felt inevitable the end was near for Tabcorp, with the performance of the brand being considerably lower than expectation since its formation in 2016. A further factor, that will have only served to increase the speed at which Sun Bets reached its eventual end was the infamous piegate incident that saw the group hit with a £84,000 penalty package from the Gambling Commission.

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