Project

WA TAB

PROJECT STATUS
Under Procurement
WA TAB

The WA TAB is the principal provider of online and retail outlet wagering services in Western Australia. Prior to the 2017 March State Election, the Western Australian Government committed to divesting the WA TAB. The sale process was stopped in August 2020 due to the impacts of COVID-19. A new sale process was commenced in October 2021.

The sale would see the exclusive license to operate wagering in the state transferred from Government agency Racing and Wagering Western Australia (RWWA) to the successful bidder. Following a successful transaction, RWWA would be renamed Racing Western Australia.

During the initial sale process, the WA Government announced the divestment would be used to further expand infrastructure investment in the state, with plans to allocate 65 per cent of the net sale proceeds towards the New Women and Babies Hospital. The remianing 35 per cent would be directed towards a racing infrastructure fund. Inclusion of these commitments in the new market process has not been confirmed. 

The successful bidder for the TAB will not have to provide funding for the WA racing industry, with the industry to secure funding through an arrangement with the WA Government.

Key Dates

May 2016 Sale Announced
Sep 2019 EOIs Open
Aug 2020 Sale Process Halted
Oct 2021 EOIs Open
Nov 2021 EOIs Close
Dec 2022 Expected Contract Award

PROJECT HISTORY

May 2016 The 2016-17 WA Budget confirmed that preliminary analysis had been conducted on the approach to a sale of the business.
Sep 2017 The Western Australian Government appointed Investec as an advisor on the potential sale of the WA TAB.
Feb 2018 Stage one of the consultation process was conducted from February to April 2018, and included discussions with the Racing and Wagering Western Australia (RWWA) Board and its subcommittees representing the three racing codes (thoroughbred, harness and greyhound).
Mar 2018 The WA Government announced that Investec had completed detailed analysis of potential transaction options for the WA TAB. The analysis found that it is possible for a transaction to be structured in a way that meets the interests of both the State and the racing industry.
May 2018 The 2018-19 WA Budget confirmed that it would conduct a consultation process with the industry on the potential sale process.
Jun 2018 The WA Government commenced stage two of the consultation process, with the release of a discussion paper which provided an overview of how a potential sale of the WA TAB could be structured. This covered the proposed commercial structure and contractual agreements, the governance model, racing industry guarantees and protections, the legislative framework, and related policy matters.
Aug 2018 The WA Government closed consultation on the proposed framework.
Oct 2018 The WA Government confirmed that it would proceed with the sale of WA TAB. 35 per cent of the sale proceeds will be placed into a racing infrastructure fund.
May 2019 The TAB (Disposal) Bill allowing for the sale of the asset was introduced into Parliament following the 2019-20 Budget. The Bill passed through the WA Parliament in September 2019.
Sep 2019 Expressions of Interest for the sale opened. EOIs close on 28 October 2019. At the time, a new operator of the asset was expected to be appointed by mid-2020. Additionally, the government confirmed that 65 per cent of proceeds would be be directed to the new women's and babies hospital.
Aug 2020 The Western Australian Government announced that it had agreed with TABcorp to disengage from the negotiation process for the sale until further notice. At the time TABcorp was being considered as the preferred bidder for the sale. This announcement followed TABcorp's decision to write down a total of $1 billion from the value of its Wagering and Media division and Gaming Services division.
Oct 2021 The WA Government recommenced the divestment process for the TAB by opening EOI's for a new sale process. Citing changed market conditions, the WA Government have adjusted the TAB’s proposed sale model. The successful bidder will no longer be required to enter into a Racing Industry Agreement with the state government to fund the WA racing industry at equivalent pre-sale levels. The racing industry will instead secure ongoing funding through a new arrangement with the WA Government.
Sector
Other
Procurement approach
Brownfield transaction |
Location
Western Australia |
Resources
Project website
WA TAB