Tabcorp Launches Luxbet Online Bookmaking Business

As reported here back in May 2008, Gaming firm Tabcorp Holdings Ltd has launched its Northern Territory-based telephone and online bookmaking business which will start operations on October 1.

The new venture, to be known as Luxbet.com, will offer fixed odds racing, tote odds betting and the full suite of fixed odds sports and novelty event offerings, such as elections and entertainment events.

Tabcorp said Luxbet, which will operate from an office at Fannie Bay racecourse in Darwin, would compete with corporate bookmakers in the Northern Territory.

Luxbet would enable Tabcorp to offer products that it had previously been unable to offer because of regulatory restrictions, such as betting on elections, entertainment events and fixed-odds betting up to the jump on all races.

“By entering the Northern Territory, we can offer a more complete product range and new betting options,” Tabcorp’s managing director of wagering, Robert Nason, said.

Tabcorp said Northern Territory corporate bookmakers had experienced strong growth as a result of differences in the regulatory environments between Australian states and territories.

Tabcorp estimated that Northern Territory corporate bookmakers would generate more than $4 billion in revenue this financial year.

The company said betting on tote odds by corporate bookmakers had resulted in significant wagering revenue growth in the Northern Territory at the expense of and .

Luxbet.com would enable Tabcorp to grow its wagering revenue and return income back to the NSW and Victorian thoroughbred, harness and greyhound racing industries.

Luxbet’s sports bookmakers licence, which has been granted by the Northern Territory Racing Commission, is for seven years and cost Tabcorp $35,000.

According to Tabcorp, Luxbet.com will offer fixed odds on more thoroughbred events than any existing corporate but the service will be an Internet and telephone only offering. Luxbet.com intends to be competitive in the Northern Territory in terms of the prices offered to customers and its preparedness to take on larger transactions.

From October 1st 2008, customers can visit www.luxbet.com or telephone 1300 LUXBET (589 238) to sign up for new accounts and credit betting will be available to selected customers. Customers will also be able bet with Luxbet.com using their , without any fee.

Tabcorp representatives maintain that Luxbet.com will operate as a stand-alone business in its own right, separately from the NSW and Victorian TAB businesses. The plan is for the existing TAB Sportsbet to continue to operate as it currently does, as a sports and fixed odds betting service, with a number of restrictions, too retail and account customers throughout Australia.

Tabcorp have big plans for Luxbet.com and are planning to be a significant player and leader in the Northern Territory market. Their aim is to provide a superior service to customers who are seeking to bet through a Northern Territory-licensed bookmaker. But after a very unsuccessful transition to new online software for their existing TAB businesses earlier this month, punters will rightfully be fairly sceptical of Luxbet’s ability to deliver on this objective

To assist Luxbet.com get a head start in the competitive Northern territory market, Tabcorp is acquiring certain business assets from Sportsbook, which has been operating under license in NSW. These business assets are being used to assist the start-up of Luxbet.com.

It remains to be seen however if Luxbet.com can compete in with the big boys in the corporate bookmaking sector given their aim provide a discretionary payment to each of the NSW and Victorian racing industries of 12.5% of profits. Educated punters are very price and market conscious these days and Luxbet.com will not be able to get away with the 120% plus markets that they do in their existing businesses.

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