At the request of the Racing and Wagering Western Australia (RWWA) Board, the McGowan Government  has announced that it will recommence the WA TAB sale process.

Previous negotiations, while well progressed, were suspended because of uncertainty caused by COVID-19.

Market conditions have evolved since a sale was first considered. The process is an opportunity to test the market with the aim of establishing whether a sale would be in the best interests of the racing industry.

RWWA’s purpose is to provide a sustainable future for the WA racing industry. All bids will be measured against this outcome.

The sale will not proceed unless it is in the long-term interests of the racing industry and the State.

RWWA will continue to engage and consult the racing industry as the process develops. It is expected that an outcome will be known by late 2022.

The State Government’s announcement regarding the recommencement of the sale can be found here.

If you have questions or concerns regarding the sale process, we encourage you to email industryfeedback@rwwa.com.au.

What has been announced regarding the WA TAB sale?

At the request of the Racing and Wagering Western Australia (RWWA) Board, the WA Government have recommenced the sale of the WA TAB under a new market process, with an invitation for Expressions of Interest (EOI) open until 16 November 2021. The process is an opportunity to test the market with the aim of establishing whether a sale would be in the best interests of the racing industry.

What does “new market process” mean?

The new process has commenced with the release of an invitation for EOI to the market, with the opportunity for private operators to present their credentials and provide indicative bids. RWWA’s purpose is to provide a sustainable future for the WA racing industry. All bids will be measured against this outcome. The sale will not proceed unless it is in the long-term interests of the racing industry and the State. RWWA will continue to engage and consult the racing industry as the process develops. It is expected that an outcome will be known by late 2022.

A notification regarding the invitation for EOI is available on the Tenders WA website www.tenders.wa.gov.au.

Why was the previous sale process stopped?

Previous negotiations, while well progressed, were suspended because of uncertainty caused by COVID-19. Market conditions have evolved since a sale was first considered. The new process is an opportunity to test the market with the aim of establishing whether a sale would be in the best interests of the racing industry.

What are the key steps and dates in the process?

Timings are dependent on several factors and may shift, however there are two main stages to the new process.

  • Stage 1: Expressions of Interest
    • An open market invitation for interested parties to submit their interest and qualifications in accordance with the EOI requirements.
    • The invitation for EOIs will be open until 16 November 2021.
    • Once EOI’s have been received, an evaluation process will take place where qualified parties will be selected to participate in Stage 2.
  • Stage 2: A Request for Final and Binding Offers (RBO)
    • Anticipated to commence towards the end of 2021/early 2022.
    • This involves one or more selected parties submitting a binding offer, from which a preferred respondent would be selected.

Following this, the WA Government and RWWA (where appropriate) would engage directly with the preferred respondent to resolve any outstanding issues with the intention of entering legally binding transaction documents to formalise and implement the transaction and issuance of the new wagering licence (subject to the passage any legislative amendments that may be required).

When would the transaction be finalised?

Should an appropriate arrangement be negotiated that is in the long-term interests of the racing industry, a new wagering operator would be expected to be in place towards the end of 2022. However, the following separation process may take several months to complete.

How will the industry be consulted with during the sale process?

A critical element of this process will be to ensure that the industry continues to be engaged. This will be done by:

  • Establishing an industry working party group consisting of representatives from industry bodies.
  • Providing important updates through RWWA’s various channels, including continuously updating this page.
  • Conducting industry forums in both the metropolitan and regional areas where you will have the opportunity to ask questions or share any concerns.

RWWA encourages individuals to send any questions or concerns they have to industryfeedback@rwwa.com.au, and a representative from RWWA will be in touch.

How will the funding model work?

Under the new process, the State Government will put in place a suitable funding mechanism that would provide financial security to the industry, similar to existing arrangements such as the WA Racing Bets Levy as well as the proceeds industry receives from the Point of Consumption Wagering Tax receipts.

The WA Government is receptive to looking at a model where the entire value associated with the transaction will go to the WA racing industry. However, the exact funding model will not be finalised until a binding offer is reached. The sale, and by extension the funding model that follows from the sale, will not proceed unless it is in the long-term interest of the racing industry.

We are in a unique position in that we can review the funding models in all other jurisdictions to ensure we get the right deal for the industry in WA. Moreover, we have the opportunity to secure a long-term funding framework that reflects today’s contemporary national wagering market.

 

Will there still be an infrastructure fund?

It is understood that infrastructure is an important component to the ongoing sustainability of the industry, and this will be a key consideration during the process. The exact funding model will be further understood once a binding offer is reached. The industry will be consulted with as part of this process.

Who do I contact if I have questions regarding the sale process?

If you have questions or concerns regarding the sale process, we encourage you to email industryfeedback@rwwa.com.au.