Australian bookmaker Tabcorp has launched legal proceedings against Entain and the Australian Hotels Association (AHA) over a deal struck between the two that has seen Entain products advertised in member hotels and pubs.
According to court documents, Tabcorp alleges that the AHA’s New South Wales division failed to disclose the nature of the deal it had agreed with Entain and as a result, may “raise a risk of contravening the Unlawful Gambling Act of 1998”.
Tabcorp has the exclusive rights to operate retail wagering in the state’s pubs and hotels thanks to a long-standing deal that was last extended in 2013 and is set to run until 2033. However Tabcorp now claims that sufficient details of Entain’s recent advertising deal with the AHA weren’t made available prior to its agreement.
In the proceedings, Tabcorp has stated that had it known to the extent with which Entain would advertise its sports betting brands in NSW pubs and hotels, it would have objected to the deal on the grounds that it directly impacts Tabcorp’s exclusive rights deal with the AHA.
The legal action could result in Tabcorp launching substantive proceedings which would involve a claim for financial damages paid by both parties.