Home

TAB agents fear big financial losses in sell-off

Daniel MercerThe West Australian
Jeff Miles says the sector needs protection.
Camera IconJeff Miles says the sector needs protection. Credit: Simon Santi

Mum-and-dad small businesses that operate WA’s TAB outlets are concerned about plans to sell the betting agency, fearing they could be left hundreds of thousands of dollars worse off.

Amid moves by the State Government to privatise the TAB, the body that represents the owners of almost 89 bricks-and-mortar retailers has warned they could become collateral damage from any deal.

The WA TAB Agents’ Association said that while it cautiously welcomed the Government’s proposal, it was worried there were too few safeguards for the 120 small businesses that owned or part-owned licences to run the agency’s shopfronts.

Key to these concerns is a renegotiated contract between the TAB and agents, signed in 2016, under which the retailers gave up valuable buyout rights.

Get in front of tomorrow's news for FREE

Journalism for the curious Australian across politics, business, culture and opinion.

READ NOW

One industry source estimated the previous rights were worth four times the maximum $100,000 payout the Government said would be given to agents who were forced to close by a new TAB owner.

The concerns come after the Government’s legislation for a point-of-consumption tax, which will impose a 15 per cent levy on sports and wagering bets made in WA, passed State Parliament recently.

Treasurer Ben Wyatt and Racing Minister Paul Papalia said the tax, along with plans to introduce virtual racing machines inside TABs, would “help improve the competitive position” of outlets.

Agents’ association president Jeff Miles said the point-of-consumption tax and “Trackside” virtual gaming were positive moves but stressed there were more significant issues at play.

Mr Miles, who runs a TAB outlet in Bull Creek, said franchise owners had invested a collective $40 million into the retail network, which was responsible for about 33 per cent, or $550 million, of the group’s revenue.

He said for many franchisees, their businesses represented their life savings and superannuation plans, so it was vital the sector was properly protected.

“Our main concerns revolve around ensuring there are contractual protections in case the new operator of the TAB decides to force the closure of an agency, maintaining investment in the standalone retail network while the sale progresses, and having a plan in place for low-turnover agencies that are currently struggling,” Mr Miles said.

Mr Wyatt noted that most agents had no protection at all after the most recent contract negotiation and they would be “better off” under the Government’s proposed deal.

“The Government has been very clear that they are committed to leave the industry, including TAB agents, no worse off under any sale of the TAB,” he said.

Get the latest news from thewest.com.au in your inbox.

Sign up for our emails