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ACT government to consider ACTTAB sale
Saturday September 28,2013 : AUSSIE BETTING COMPANY TO BE SOLD?
ACT government to consider ACTTAB sale following feasibility study
The Australian business press is reporting a possible intention to sell off the Canberra-based sports betting firm ACTTAB by the Australian Capital Territory provincial government following a feasibility study which found that substantial further investment was needed if the company was to survive and thrive in an increasingly competitive gambling market.
The independent professional business services company PricewaterhouseCoopers conducted the study, concluding that there was a compelling argument for disposing of the company, based on its vulnerability to competition and the dangers of a drop in the company's value as its market share declines.
ACT government Treasurer Andrew Barr supports the PwC recommendation, saying that ACTTAB would need substantial investment to continue.
“The Government's not going to be making that capital investment,” he told reporters. “While no final decision has been made, the Government has agreed to further consider a sale.” This may be as early as November 2013, he added.
The chief executive of the company, Tony Curtis, agreed that without the injection of further capital the ACTTAB would no longer be viable due to continuing intense competition from corporate bookmakers and betting exchanges.
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