The Australian Competition and Consumer Commission will not oppose the proposed acquisition of the South Australian TAB by TAB Queensland, ACCC Chairman, Professor Allan Fels, said today.
TABQ entered into a Business Sale Agreement to purchase SA TAB on 15 August, after being chosen as the preferred buyer by the South Australian Government.
TABQ provides totalisator wagering and fixed odds sports betting services in Queensland and the Northern Territory. The acquisition of SA TAB provides TABQ with a 99 year licence to conduct betting services in South Australia, with 15 year exclusivity in respect of off-course totalisator wagering and fixed odds sports betting. In the future, TABQ will pool bets placed in South Australia, currently pooled with TABCorp, with TABQ’s existing betting pool.
TABQ sought the ACCC's view as to the likely effect of the acquisition under section 50 of the Trade Practices Act 1974 which prohibits acquisitions that would be likely to have the effect of substantially lessening competition in a market.
"After market inquiries among industry participants including TABs in all States and Territories, bookmakers and other interested parties, the ACCC considered that punters would not be adversely affected by the acquisition", Professor Fels said.
"The ACCC took into account the availability of telephone and Internet betting with other TABs and the fact that the number of Australian totalisator betting pools would not be reduced by the acquisition. Also, licensing restrictions will limit commission rates charged by SA TAB as a share of the totalisator pool.
"The ACCC therefore considered that the acquisition is unlikely to substantially lessen competition".