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News UK and Tabcorp Have Great Ambitions for Sun Bets
By Brodey Sheppard - February 17, 2016
Australian wagering giant Tabcorp has embarked on a new international deal, partnering with News UK – a subsidiary of Rupert Murdoch's News Corporation – to target Irish and UK gambling markets. This will be done through a new business linked to the tabloid The Sun called Sun Bets, and will be launched in 2016.
Under this agreement, News UK – publisher of The Sun, as well as Sunday Times and The Times – will undertake external and internal media production of Sun Bets, while the Melbourne-based company will provide the share of revenue. This deal is a decade-long agreement and could be extended depending on the performance of the project.
Although News UK would not reveal any details about the process that led to Tabcorp gaining the contract, they did explain the plan for Sun Bets.
“We want Sun Bets to become a household name in the coming years,” said Helen Collier, the head of communications of News UK. “We expect it to become a really important part of our business… We are at a very early stage with the brand, but the hard work begins now. We believe that with our brand and reach and Tabcorp’s expertise, we can create a fantastic product.”
The investment bank Credit Suisse believes that the partnership might experience a slow start in the first year. Credit Suisse commented that the near-term opportunity for Tabcorp seems modest when compared to the overall group earnings.
"Beyond the top four or five UK operators, no single operator holds a market share of more than two percent," said Larry Gandler, an analyst with Credit Suisse. "A one percent market share would equate to US$70 million in revenue and perhaps US$10million - US$15 million in EBITDA (inclusive of revenue share) or around two to three percent of Tabcorp group earnings. In the first few years, profitability could be constrained as Tabcorp looks to invest to build its brand and acquire new customers."
In spite of this, the partnership is optimistic about the venture and is looking forward to building its own ‘Dream Team’. The objective will be centered on the horse racing and sports betting market.
Tabcorp chief executive David Attenborough said, “Entering the UK market in partnership with News UK is an exciting opportunity for Tabcorp as we take our capability into the AU$7 billion UK online gambling market. The Sun has more than ten million readers per week and over one million football fans actively engaged through The Sun Dream Team FC fantasy football competition.”
“This partnership provides us with the opportunity to create a leading online bookmaker in the UK market under the Sun Bets brand over the coming years and fits with our strategy of pursuing close-to-core international opportunities.”
Sun Bets will be particularly invested in the growth of Fantasy Football. Rebekah Brooks, the Chief Executive of News UK claims that, “The two powerful brands of The Sun and our Dream Team fantasy football competition already have incredible reach and I have every confidence that this will be a rewarding partnership, which will see Sun Bets firmly established as a key player in the online betting business.”
The potential success of Sun Bets is yet to unfold. But one thing is certain: the partnership of the two groups could heavily influence the digital development of horse racing and sports betting, as well as other wagering avenues.
There are, however, already many existing sports books that offer great opportunities and entertainment. So you don't have to wait for other betting websites to launch if you want to get into the fun today. If you are curious about football wagering and want to know more about it, then check out HitYah for all the news, tips and updates about the online betting world.