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Tabcorp seeks exit from Sun Bets after PieGate Incident

Because the reserve goalie ate the pie during the game, the British government considered the stunt to be an intentional influencing of the betting market, thus the company and the player were fined. Sun Bets received an outpouring of negative publicity, which proved embarrassing for the company, as well as Tabcorp. While the two companies signed an agreement to launch an online gaming website in 2016, from the beginning, the website struggled to make any kind of profit. In fact, the performance by Sun Bets had been called “unsatisfactory.” Operating losses for the partnership in the first six months of 2017 were $23.5 million, and the losses totaled $45 million for the entire year. Tabcorp revealed it had already spend $14.4 million to establish the venture in 2016. That means, over the course of two years, the company had spent nearly $60 million since it agreed to the partnership. Many experts believe that Tabcorp was looking for an excuse to back out of the deal because it did not meet the company’s expectations. Tabcorp, valued at $9.2 billion, is the largest gaming company in Australia. The company has been looking for other opportunities outside its domestic market because of growing competition in Australia. Tabcorp was flushed with cash and position after its Tatts Group merger.

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