Tabcorp shakes main wagering team in the midst of pain punting. Gambling giant Tabcorp is shaking up the management of its underpressure wagering firm, after $1 billion in writing down the division and announcing the company’s chief executive and chairman’s departure.
The $7.2 billion group is yet to reveal who will replace its executive general manager for wagering, Andy Wright, after announcing his departure internally on July 24.
The overhaul came after a group of major investors pressed for leadership changes in the wake of increasing anxiety about Tabcorp’s results , particularly in its wagering business, following its $11 billion loter operator Tatts merger in 2017.
Tabcorp’s managing director of wagering Adam Rytenskild said in a note to racing industry partners “Community expectations for the way we operate continue to grow,” said Mr Rytenskild, who company watchers consider a leading internal candidate for CEO. “It’s critical that our business provides a strong, sustainable and efficient base to meet these demands.”
Tabcorp last week said it would write down the goodwill value of the betting division by a third, or at least $1 billion, in recognition of the impact of COVID-19 on the business and the competition it faces from online bookmakers such as Sportsbet, Ladbrokes and Beteasy.
Tabcorp said the write-down reflected “the possible acceleration of retail contraction and uncertainty regarding any longer-term impacts” due to the pandemic and a shift to an even more “digital centric” market.