Tabcorp Strikes Deal with the SUN to Enter the UK under Sun Bets
Tabcorp is one of the biggest sports bookmakers in the industry in Australia, it has been feeling the great force of its foreign competitors like Ladbrokes, William Hill and Paddy Power among others from the United Kingdom. These competitors have been grabbing a huge piece of the home market of Tabcorp. This has been going for several years, but finally, the Australian company is going to fight back. This is because the operator has turned the table on these competitors by cutting a deal of partnership and is teaming up with The Sun newspaper in order to enter the gambling market of the United Kingdom that is worth more than £3 billion per year.
The CEO of Tabcorp, David Attenborough, stated that this was a pretty natural step for the company. He added that they have been working with News Limited and that they have established a high degree of trust, as they have one of the biggest brands in the United Kingdom as more than half of the betting population of the country regularly reads or engages in one way or another with The Sun.
This new brand, Sun Bets, is going to be launched within the next 6 months, with Tabcorp providing the gambling products and platform with News UK promoting the venture through its popular sites. According to the deal that they have, Tabcorp is going to provide News UK a share of Sun Bets’ revenue. Tabcorp had a pre-tax profit that reached AU$334 million in 2015, and it is going to spend AU$20 million over a year in order to kick start the UK venture in one of the world’s most competitive internet gaming markets. This market is rich as the web revenues there is worth more than 3 billion English pounds a year with more than 427 licensed operators, as per the numbers in the research by the UK Gambling Commission.
According to an analyst of Bank of America, Tabcorp has a great chance to gain a big share of the UK market due to the fragmented nature of the market. He added that The Sun newspaper in the United Kingdom has a name and it targets the working class demographic. This is why it represents an excellent platform for a betting operation.
The deal with The Sun will ensure Tabcorp that it is not going to be forced to make a lot of effort in order to establish the new brand, as the Sun will take care of that, as they focus more on the products and the innovation while providing high quality customer support
Trust and having a brand is essential, as a new name can’t just carve out a share of a market without a well-known brand in its back. An example of that is the difficult experience that Bet365 has endured in Australia after is earned its gambling license back in 2011. The sun has more than 10 million readers with more than one million soccer fans that are involved in the fantasy football league it offers.