Tabcorp revamps pub model, cuts commissions for 1,300 venues
Tabcorp Holdings Ltd is implementing sweeping changes to its retail wagering agreements, with more than 1,300 hotels set to lose commission payments under a newly proposed model detailed to venue operators on Monday.
The betting company’s restructuring plan includes the removal of daily venue fees, sign-up commissions, and deposit handling fees, while retaining turnover-based commissions for most hotels.
However, venues falling below a new turnover threshold—estimated at 1,300—will no longer qualify for any payments. Some low-volume locations in remote areas may be exempt.
The changes come as Tabcorp grapples with declining market share in the face of digital disruption, having lost its dominance in retail wagering to mobile-first competitors such as Flutter Entertainment-owned Sportsbet.
“Tabcorp has had some serious structural challenges that’s played out in the last eight or nine months, but it’s not just us that needs a change,” said new chief executive Gillon McLachlan. “What I want to say to you is, ‘we’re coming to you saying we need your help, to listen to us on this change journey’.”
In exchange, Tabcorp is launching a series of in-venue exclusive promotions to reinvigorate customer engagement, including Saturday’s Tabtime, Thursday happy hour bonus bets, and expanded promotional activity during live sporting events from Thursday through Sunday. The company has reportedly earmarked A$20 million for these initiatives in the 2026 financial year.
Despite these efforts, hotel groups have voiced concern over the financial burden placed on lower-turnover venues.
Stephen Ferguson, chief executive of the Australian Hotel Association, said: “The venues that currently earn probably about $8,320 or something like that will go to zero overnight in an FY26 in NSW … those pubs will be $4,500 in the red.”
Bruce Mathieson junior, a key industry figure and Endeavour Group shareholder, acknowledged the necessity of reform but warned of its impact. “They are re-engineering the retailer to offer better support for their app. I would do that too if I were in their shoes. But there is going to be significant hurt as a result.”
Jonathan Jackson, 27th May 2025
