Tabcorp has maintained its digital revenue market share for the first time, but it warned that cost of living pressures have hit its loyal punters.
👉 Background: Tabcorp is the old-school wagering business that’s been around since 1961. It has more than 300 TAB stores as well as “in-venue” offerings in pubs, clubs and racetracks.
👉 What happened: Before the dawn of digital betting companies, like Sportsbet, Ladbrokes and others, Tabcorp ruled the roost. But last year, TAB promised to invest heavily in its digital offering to better compete with its more digital-savvy competitors.
👉 What else: And now, Tabcorp has maintained its digital revenue market share for the first time since 2019. But despite this positive news for Tabcorp investors, Tabcorp warned that cost of living pressures have hit its loyal punters.
💡 While wagering and lottery is usually resilient in economic downturns, the current downturn has led to some unusual behaviour.
💡 In fact, during the dot-com bubble in 2000 and the GFC in 2008, the gambling industry’s size still grew… slightly.
💡 But it seems like this time it’s a little different.
TAB reckons that punters are now placing smaller bets and gambling in lower volumes as inflation rises.
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