Australian online sports betting operator CrownBet and New South Wales club-operating body ClubsNSW have locked a landmark deal that would allow club members to place in-venue online bets.
The partnership will change significantly the betting landscape in the southeastern Australian state that is home to over 7.5 million people. At present, the Tabcorp-owned TAB brand holds the largest share in the local betting market. The ClubsNSW pubs and clubs host special TAB facilities where bettors can place over-the-counter wagers.
Although significant investment has been put into the modernization of TAB’s digital offering over the past several years, it is still highly dependent on revenue from retail operations. It is believed that the new CrownBet offering will put the Tabcorp-owned brand into serious danger from losing customers.
Signing the deal, CrownBet, which is 60% owned by major casino operator Crown Resorts, has committed to developing a special app for ClubsNSW club members that will offer in-venue betting options. It has been understood that the app will be connected to CrownBet’s larger rewards program. By accumulating points, customers will be able to take advantage of special offers at different club venues across the state.
The newly secured deal will also see CrownBet install cash-out machines across the New South Wales clubs. Thus, customers will be able to place bets on their mobile devices while at the venues and withdraw their winnings.
The clubs will be able to retain the TAB facilities and it is believed that many of them will indeed keep those, despite the launch of the CrownBet product. However, there may be clubs that will prefer to close their TAB outlets and try to capitalize solely on the new digital offering.
ClubsNSW CEO Anthony Ball told local media that most of the clubs have been losing revenue on the TAB outlets at their premises as more and more people have been showing greater interest in online betting products. This is why the CrownBet deal does not seem to come as a big surprise.
As for CrownBet, the newly penned agreement will increase the brand’s presence in New South Wales significantly. So far, CrownBet has derived the bigger portion of its revenue from the state of Victoria where it has much bigger presence. Prior to the ClubsNSW deal, the Crown Resorts-owned sportsbook held a mere 5% share in the New South Wales betting market.
CrownBet won the highly competitive ClubsNSW tender over TAB, Sportsbet, and betting.club. Local media reported that Crown Resorts’ brand won the competition by offering higher commission for clubs and better rewards program for their members.
ClubsNSW is a trade association representing more than 1,350 clubs across New South Wales. The facilities currently have more than 6.7 million registered members.
