Tabcorp CEO Gillon McLachlan Endorses Australia’s Gambling Advertising Reforms Following AU$2.6bn FY26 Revenue

Gillon McLachlan, Chief Executive of Tabcorp Holdings, described the Australian government’s changes to the 2001 Interactive Gaming Act as a sensible set of reforms. Speaking to ASX investors after the FY26 financial report, McLachlan said the company is well positioned to absorb any impact. “In an absolute sense, they are a sensible set of reforms,” he said.

McLachlan noted that the reforms target vulnerabilities while allowing businesses to promote sensibly and the industry to grow. Tabcorp’s 3,500 retail outlets, Sky Media assets, and existing alignment with many recommendations provide a relative advantage. This stance contrasts with criticism from Kai Cantewell, CEO of Responsible Wagering Australia, as well as the Greens, opposition MPs, and independent David Pocock, who view the reforms as insufficient.

Tabcorp’s FY26 Financial Performance

Tabcorp reported revenue growth of 0.8% to AU$2.6bn (£1.36bn). Statutory net profit rose 26.5% to $46.3m from $34m, with EBITDA up 10.3% to $431.7m from $387.3m. Operating expenses totaled $700.7m and capital expenditure $140.1m.

Group net debt fell by $76.3m to $533.1m. The group enjoyed revenue growth across fixed-odds sports and racing betting, with the former up by 8% according to McLachlan, though parimutuel betting declined roughly 5% or 6% year-over-year. Retail betting turnover during the World Cup rose 57%. Mark Howell, the group’s Chief Financial Officer, expects an EBITDA benefit from retail operations by FY27, with 97% of venues now in the new commercial model. According to reporting by SBC News, these results underscore Tabcorp’s cost discipline and retail focus amid competition from Entain, Flutter Entertainment, and bet365.

Regulatory Risks and Market Outlook

The reforms are expected to take effect in January. An AUSTRAC investigation opened in May into anti-money laundering and counter-terrorist financing controls led to a risk modifier on McLachlan’s short-term incentive, cutting his bonus by 20 percentage points. His FY26 earnings included a salary of $1.46m and bonus of $799,500. Tabcorp shares fell from a 2026 peak of $1.17 on 4 May to $0.91.

The appointment of Paul Jevtovic, former AUSTRAC CEO from May 2014 to April 2017, as Chief Financial Crime Officer follows a prior $45m penalty against Tabcorp. With live wagering now greenlit by the Australia Communications and Media Authority, Tabcorp’s established assets should support leadership. Resolving compliance issues will determine whether that positioning holds as the rules change.

Reporting: SBC News

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