Online wagering operator ‘betr’ has shifted its gaming licence from the Northern Territory to Tasmania, with the new licence taking effect yesterday.
The ASX-listed company said the Tasmanian Liquor and Gaming Commission granted it a five-year licence following an assessment process, capping what betr described as a multi-year evaluation of regulatory frameworks across Australia.
Pulse understands betr met with Treasurer Eric Abetz and the Commission in Hobart for final negotiations on Monday, hours before the licence was officially granted.
In a statement, betr executive chairman Matt Tripp said the company saw Tasmania as “a high-quality and respected regulatory environment” and would have at least six staff in Hobart by the end of the year.
The move comes after the Northern Territory government announced in May last year it would double the annual tax cap on licensed corporate bookmakers, a decision the industry said was made without consultation.
Almost all of Australia’s major online bookmakers – including Sportsbet, Bet365, PointsBet, Ladbrokes and Neds – are licensed in the territory.
Responsible Wagering Australia chief executive Kai Cantwell said at the time that the tax increase had “blindsided” the industry and would put investment at risk.
Betr executive chairman Matt Tripp said the company saw Tasmania as “a high-quality and respected regulatory environment” and would have at least six staff in Hobart by the end of the year.
“This move won’t result in any more gambling, since we and all our competitors already service Tasmanian customers, but it will provide a new source of economic activity and jobs in Tasmania,” Tripp said.
“Tasmania is the right long-term home for betr and this is an important step in the evolution and ambition of our business.”
The move marks the end of an era for Tripp, who was one of the pioneers of the NT wagering sector when he bought then-struggling Darwin betting company Sportsbet for around $250,000 in 2005.
He went on to sell it to global giant Paddy Power, now Flutter Entertainment, in a deal that valued the business at $338 million in 2011.
Betr chief executive Andrew Menz said the company looked forward to its “long-term presence in Tasmania, contributing to local employment and investment.”
The company told investors customers would not need to take any action and there would be no major disruption to services.
Bets placed before Monday will be settled under the existing Northern Territory licence, which will be surrendered after the transition.
Betr had betting turnover of around $1.19 billion in the nine months to March 31 and has a market capitalisation of around $190 million.
The shift could signal a broader exodus from the territory, where the online wagering industry was estimated to contribute more than $150 million to the local economy each year.
The Tasmanian government was contacted for comment.
