Racing NSW supremo V’landys settles Tabcorp dispute as shareholders give green light

Racing NSW boss Peter V’landys has settled an ongoing dispute with Tabcorp over the $11 billion split of its wagering and lotteries division, paving the way for the gambling giant’s demerger to go ahead without any further roadblocks.

V’landys confirmed he had struck a long-term multi-million dollar deal with Tabcorp after threatening to take legal action if the demerger went ahead. He said in March the split would be a “financial disaster” for the racing industry.

“We have come to an arrangement where we are supporting the demerger because we have a buffer against the exposure of any losses to the NSW Racing industry,” he told this masthead. “We are now not exposed to risk.”

V’landys declined to comment on the amount of money NSW Racing will receive from Tabcorp, but industry sources suggested is expected to be more than $10 million per annum.

Tabcorp shareholders on Thursday voted overwhelmingly in favour of a demerger that will hive off its booming lottery arm into a new ASX-listed company. Just under 99 per cent of votes were cast in favour of the demerger at a shareholder meeting on Thursday morning, paving the way for The Lottery Corporation to be listed on the ASX on May 24.

Tabcorp chairman Steven Gregg said the company was pleased to have received shareholder approval.

“This is an important milestone in repositioning the Group’s portfolio and setting up Tabcorp and The Lottery Corporation for future success,” Gregg said.

Tabcorp decided to demerge last July after it received two $3.5 billion takeover offers from global wagering giant Entain and private equity group Apollo Global Management.

The $11 billion outfit faced repeated calls from shareholders to unpick the 2017 merger of Tabcorp and the Tatts Group, as the company’s struggling wagering division dragged on its outperforming lotteries business, with investors like for its reliable “infrastructure-like” properties.