Tabcorp Seeks Growth by Transitioning from Pokies Gaming Operator to Solutions Provider
Tabcorp Holdings is doing its best to stay on top of the Australian gambling industry by expanding its new role as a provider of solutions and services for electronic gaming equipment (EGM). Although mainly a tote operator, the firm's Tabcorp Gaming Solutions (TGS) division is currently on the move to corner a share of the EGM-servicing business in New South Wales, where there are more than 97,000 pokies machines in operation.
After all, the firm's TGS division enabled Tabcorp to counter the potential negative effects of the Victoria Government's legislative action way back in 2012, which stripped the betting company of its Victorian license as a pokies machine operator. The new line of business proved to be the next best alternative to offering pokies as a business, because TGS division became a major contributor to revenue growth for the same year.
By servicing and maintaining the 8,500 pokies machines operated by Gaming Machine Entitlement (GME) holders who offer pokies in state-approved venues, Tabcorp was able to corner one-third of Victoria's EGM-servicing market. Accordingly, the division's Victoria customers realized turnovers that are above by at least two percent than those earned by non-TGS clients.
Tabcorp Chief Executive David Attenborough expressed plans of entering the servicing industry in NSW, using a measured approach of targeting mostly the small and medium-sized gaming venues that do not have the capabilities to manage and service their gaming equipment. The betting company recently signed up Sydney's Kogarah RSL Club as its first NSW-based TGS customer.