Tabcorp revenue rises to AU$1.344 billion in H1 despite digital turnover decline
Australian betting company Tabcorp Holdings has reported a slight growth in revenue and turnover in the first half of the financial year, despite a decline in digital turnover.
Tabcorp revealed that revenue rose slightly year-on-year to AU$1.344 billion (US$954 million)1 AUD = 0.7101 USD
2026-02-26Powered by CMG CurrenShift, with EBITDA reaching AU$217.4 million (US$154 million)1 AUD = 0.7101 USD
2026-02-26Powered by CMG CurrenShift. Wagering turnover also increased 0.3%, supported by a rise in sports betting activity.
The overall revenue Tabcorp received from wagering grew by 1%, but when excluding the Victorian license introduced in 2024, wagering revenue dropped 2.5% due to “below-average gross yields” between September and early November.
Underlying costs fell 3.7%, with a 1.8% decline in operating expenses in its wagering and media business. Domestic racing turnover also decreased, falling 1.2% to AU$5.73 billion (US$4.1 billion)1 AUD = 0.7101 USD
2026-02-26Powered by CMG CurrenShift.
However, sports turnover rose to AU$1.44 billion (US$1.0 billion)1 AUD = 0.7101 USD
2026-02-26Powered by CMG CurrenShift, rising 6.9%, even though racing’s share of total wagering turnover declined to 79.9% from 81.1% last year.
Digital revenue also decreased as Tabcorp’s active users dropped 4.4% to 766,000. Still, cash revenue rose by 2.8% and cash turnover increased by 1.2% year-on-year. International wagering revenue also grew by 6.6%, driven by new customers.
Tabcorp Chief Executive Gillon McLachlin said, “There’s greater depth in our business. I’m proud we’ve delivered double-digit earnings growth in a half where wagering operators were impacted by a run of low yields during the footy finals and spring racing carnival.”
He continued, “There’s more to do and we’re not where we want to be yet, but we have made significant progress in the first half, and we will remain relentless in executing on our strategy in the second half and beyond.”
This comes after Tabcorp received approval from regulators to develop its Tap in-play betting product.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
A turnaround with caveats
Tabcorp’s latest half-year result shows a business edging back to growth while wrestling with the same headwinds reshaping gambling globally: softening digital engagement, tighter guardrails and higher expectations from regulators and investors. The company reported modest gains in revenue and wagering turnover and leaned on cost cuts to expand earnings, even as digital turnover and active users declined. That mix reflects a strategic pivot toward cash channels and in-venue experiences, alongside a bet that product innovation and regulatory clarity will help steady the online side.
Behind the headline numbers sit two forces moving in opposite directions. On one side, sports betting turnover rose as punters returned to marquee events, offsetting weakness in racing and lower gross yields through the spring carnival. On the other, digital revenue slipped as Tabcorp’s active online user base shrank, exposing the company to fierce competition and a consumer shifting between platforms and formats. The question for the second half is whether new live-betting mechanics and retail-led activation can reignite growth without triggering new compliance flashpoints.
That balance is pivotal because Tabcorp is trying to grow in-play betting within a strict legal framework that prohibits most online live wagering. The company is pursuing a path to capture demand for real-time markets while remaining on the right side of the Interactive Gambling Act. Its ability to execute that plan, while avoiding further penalties, will help determine if the current earnings momentum is durable.
The broader industry context is equally important. Operators face tougher enforcement on marketing and responsible gambling, a court case that could reset liability standards and more scrutiny of VIP programs. Tabcorp is not insulated from those pressures. Recent rulings and fines have put the company on notice even as it wins approvals that expand its product set.
Against that backdrop, investors have rewarded management’s cost discipline and strategic messaging. But shareholder patience is now tied to delivery: product rollout at scale, digital stabilization and clean execution under closer regulatory oversight.
In-play ambitions reshape the product mix
Regulatory clearance for Tabcorp’s venue-triggered live betting has emerged as a key pillar of its growth story. The Australian Communications and Media Authority concluded the company’s Tap in-play system does not breach the country’s online in-play ban because it requires a physical activation in licensed venues, potentially opening a national rollout subject to state approvals. The ruling strengthens Tabcorp’s claim to an in-play niche that competitors cannot easily replicate in pure digital channels. Read more on the approval in Australian bookie Tabcorp gets all clear from regulator on mobile in-play betting at Complete iGaming.
The green light, however, arrived alongside a reminder that enforcement risk is real. Earlier this year the regulator fined Tabcorp AU$158,400 for taking 426 live tennis bets online after matches had commenced, the company’s third breach of in-play restrictions. The penalty came with an enforceable undertaking to tighten market-closure controls and report progress, underscoring how thin the margin for error is in live markets. Details on the sanction are here: Tabcorp fined AU$158,400 for taking illegal sports bets.
Taken together, the approval and the fine define the operating lane for Tabcorp’s live-betting push: innovation is welcome if it fits the letter of the law and happens inside supervised venues; lapses in online execution will be costly. That framing matters for the half-year numbers, which show stronger cash turnover and a tilt toward retail. If Tap in-play scales as intended, it could convert foot traffic into higher-yield real-time betting without cannibalizing the core tote.
The company will still need state-by-state approvals, venue compliance and robust real-time risk controls to avoid expensive missteps. A misalignment between national and state regimes, or glitches that allow prohibited online in-play, could offset gains with fines or operational curbs.
For investors, the near-term signal is that Tabcorp can grow in-play within a compliant, monitored channel, but execution must be near flawless to sustain that advantage.
Compliance pressure builds on marketing and VIPs
Marketing conduct and VIP stewardship have become flashpoints across the sector, and Tabcorp has been pulled into both. In March the regulator fined the company AU$4 million for sending more than 5,700 direct messages to VIP customers that breached spam laws, including missing unsubscribe functions and inadequate sender identification. The company agreed to an independent review of its systems and staff training. The case is outlined here: ACMA fines Tabcorp for breaching spam laws.
At the same time, a Federal Court lawsuit filed by convicted fraudster Gavin Fineff against Sportsbet, Tabcorp and Entain alleges the operators accepted millions in stolen funds and failed to enforce responsible gambling obligations as his wagering escalated. The suit also targets former VIP managers, putting high-touch customer programs under a microscope and potentially redefining duty-of-care expectations. Background on the filing is available in Sportsbet, Tabcorp, and Entain sued over responsible gambling failures in Australia.
For Tabcorp, the convergence of spam compliance and responsible gambling scrutiny raises the bar for personalized marketing, inducements and intervention protocols. Any lift in activity from Tap in-play or seasonal sports must be matched with demonstrable safeguards, especially for high-value or vulnerable customers.
The regulatory tone is clear: VIP status does not dilute consumer protections, and operators cannot outsource legal responsibilities to third-party vendors or venue partners. Systems that generate engagement must be paired with controls that anticipate harm, document checks and enable swift de-escalation.
Failure to do so could carry financial costs and reputational damage that outweigh short-term revenue gains.
Leadership’s high-stakes incentive plan
Governance is part of the investment case. Shareholders recently approved a second round of long-term options for Chief Executive Gillon McLachlan after a first tranche surged in value alongside the share price. The Australian Shareholders Association labeled the package “outlandish,” but the board argued the awards align management with owners as Tabcorp restructures costs, renegotiates contracts and pursues a national tote by fiscal 2026. Coverage of the vote and pay structure is here: Tabcorp shareholders approve “outlandish” options deal for Chief Executive.
The compensation signals high expectations for performance and share appreciation, which raises the stakes for near-term execution on product rollout, digital repair and regulatory compliance. Investors have effectively prepaid confidence in the strategy; missing milestones could intensify pushback on pay and strategic direction.
On the flip side, the options framework could help retain leadership through a complex multi-year transformation that spans technology, retail partnerships and licensing. That stability may prove valuable as Tabcorp navigates uneven yields, a soft digital base and shifting policy winds.
The market will judge whether earnings growth can outpace compliance drag and whether the live-betting strategy delivers defensible differentiation rather than regulatory exposure.
Either outcome will feed back into the debate over incentive design and governance discipline.
What to watch next
Several markers will define the second half. First, the pace and breadth of Tap in-play adoption: state approvals, venue onboarding, customer uptake and proof that retail-triggered live betting can scale without breaches. Progress can be tracked against the ACMA undertaking following the tennis infractions, detailed in the in-play fines report, and the compliance standards noted in the approval decision.
Second, digital stabilization: arresting the decline in active users and improving gross yields in peak periods. Product integration between app and venue could help, but only if messaging and inducements stay within spam and responsible gambling rules outlined in the ACMA spam ruling.
Third, legal overhang: the outcome or interim rulings in the Fineff case, described in the lawsuit coverage, could force changes to VIP practices and source-of-funds checks across the industry. Any precedent that widens operator liability would require operational and financial adjustments.
Finally, investor tolerance: with leadership incentives tied to share performance, the bar for clean execution is high. Cost discipline and contract wins helped drive the stock previously, but the next leg likely depends on compliant growth in live betting and a healthier digital funnel.
Tabcorp’s half-year shows momentum, but the backstory is a company threading a narrow path: innovating just inside the lines, selling growth to shareholders and absorbing harder rules on how to market and manage risk. The second half will test whether that path widens—or narrows under the weight of enforcement and expectations.
