Tabcorp to consider leaving joint venture Sun Bets

The Australian gaming and wagering company, Tabcorp Holdings Ltd, has announced that it is considering leaving its joint venture with News UK.

Tabcorp is in discussions to quite Sun Bets, the online gambling site, due to its underperformance.

The company noted that Sun Bets, which is associated with The Sun tabloid, contributed to its overall 58% drop in profits during the first half of the 2018 financial year.

SEE ALSO:

• Tabcorp-Tatts merger falls at the final hurdle? Why the ACCC filed for judicial review

• ACCC could delay $11bn Tabcorp and Tatts merger amid competition concerns

• Bookmaking giants Tabcorp and Tatts set to merge

• Read the latest issue of Business Chief, ANZ edition, here

Last year saw Sun Bets lose AU$22.5mn (US$17.1mn) in it’s core earnings during the review period, as well as one-off extra costs of AU$49mn (US$37.2mn), and impaired assets of AU$4mn (US$3.03mn).

The 10-year Sun Bets deal with News UK was only signed two and a half years ago, in December 2015.

“Discussions remain ongoing and an agreement has not been reached at this stage,” the Melbourne-based firm said in a statement, Reuters reported.