William Hill flags sale of Tom Waterhouse-led Australian business

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 6 years ago

William Hill flags sale of Tom Waterhouse-led Australian business

By Nick Toscano

British gambling powerhouse William Hill has signalled it may sell its Australian business amid a wave of tougher government regulations, including a ban on credit betting and new state taxes on digital betting.

Led by high-profile bookmaker Tom Waterhouse, the Australian outpost of William Hill has been operating since 2013, after William Hill acquired tomwaterhouse.com, Sportingbet and Centrebet.

Tom Waterhouse is CEO of global bookmaker William Hill's Australian business.

Tom Waterhouse is CEO of global bookmaker William Hill's Australian business.Credit: Louise Kennerley

William Hill, the UK's second-biggest bookmaker, told the London stock exchange on Monday that betting volumes were shrinking in Australia, and said it would be "undertaking a strategic review of our Australia business".

The popularity of digital sports-betting has been exploding in Australia, growing by more than 10 per cent a year. Many of the world's biggest and best-known bookmakers, including Paddy Power Betfair, Ladbrokes, William Hill and Bet365 have moved into the market, making Australia one of the most competitive wagering markets globally.

Loading

But the country's online-only bookmakers have been facing an escalating political backlash, with concerns about excessive advertising and problem gambling prompting a wide-ranging package of reforms, including a ban on offering "free bets" or extending lines of credit to punters.

Several Australian state governments have also moved to impose a 15 per cent "point of consumption" tax,  following concerns that internet and app-based betting companies do not face the same hefty taxes imposed on the country's licensed retail providers.

The new tax means that, for the first time, the state where an online bet is placed will receive revenue on gambler losses.

"Given the credit betting ban in Australia and the likely introduction of a point-of-consumption tax in a number of states, it is clear that profitability will increasingly come under pressure," the company told the stock exchange.

Advertisement
Online bookmakers fear new digital betting taxes will jeopardise the industry.

Online bookmakers fear new digital betting taxes will jeopardise the industry.Credit: Julian Smith

So far, point-of-consumption taxes have come into force in South Australia, before it begins in Western Australia in 2019, and in Queensland.

Victoria and New South Wales are expected to introduce similar taxes.

The looming new taxes and the newly sealed merger of Australia's two biggest gambling companies, Tabcorp and Tatts, have forced online wagering businesses to consider consolidating in a bid to remain sustainable.

Most Viewed in Business

Loading