A multimillion-dollar deal
Australian betting giant Tabcorp is investing AU$33m (US$20m) in fellow Melbourne-based firm Dabble Sports.
strategic revamp of its digital gaming portfolio
On Monday, Tabcorp MD and CEO Adam Rytenskild confirmed that growing Tabcorp’s younger customer base is the aim of the multimillion-dollar agreement. Australia’s leading online broker CommSec shared news of Tabcorp’s juicy stake in the firm via Twitter:
According to the Sydney Morning Herald, Tabcorp’s 20% purchase in Dabble will earn the company a director’s seat on the board, subject to background checks and the Northern Territory Racing Commission’s nod.
Rytenskild deemed Dabble “one of the most unique and innovative wagering brands,” adding that the investment aligns with his company’s “transformation agenda.”
Tabcorp is betting on Dabble to draw in a younger demographic. More than 150,000 bettors have joined Dabble since it started in 2020. In April, it ranked second in the list of Australia’s most downloaded sports wagering apps.
A key component to Dabble is its ability to integrate wagering with social components seen on Twitter and WhatsApp. This gives users the tools to copy the wagers of friends or bettors they follow.
new energy and direction”
Dabble founder and CEO — former Pointsbet and CrownBet executive Tom Rundle — believes the two brands complement each other. Rundle expressed his excitement to partner Tabcorp “given their new energy and direction.”
According to the Herald, the Dabble deal is Tabcorp’s newest gambit to “claw back market share from its increasingly dominant sports booking rivals such as Sportsbet.”
Riding a digital wave
June of last year delivered tangible evidence of the start of Tabcorp’s strategic transformation referred to by Rytenskild. Not only did its shareholders overwhelmingly approve the AU$11bn (US$6.9bn) demerger with The Lottery Corporation, it voted Rytenskild its new managing director and CEO along with other board reshuffles. Then came the offloading of its gaming loyalty and tracking systems affiliate eBET in a deal worth AU$62m (US$39m).
As well as offloading assets, Tabcorp is also rolling out new products. It recently launched the TAB horse racing and sports betting app for its 783,000 digital bettors. In Monday’s investors news release, Rytenskild said the app has delivered “an 11% increase in weekly active customers compared to the 6 weeks prior to launch.”
The Herald reported that Tabcorp had committed to releasing a “same-race multi-offering and social betting platform before Christmas.”