Insights

Why is the Tabcorp share price racing higher today?

Tabcorp shares have started the week strongly…
The post Why is the Tabcorp share price racing higher today? appeared first on The Motley Fool Australia. –

The best performer on the ASX 200 on Monday has been the Tabcorp Holdings Limited (ASX: TAH) share price.

In afternoon trade, the gambling company’s shares are up 5% to 98.5 cents.

This compares favourably to a 0.4% decline by the ASX 200 index.

Why is the Tabcorp share price charging higher?

Investors have been bidding the Tabcorp share price higher today following the release of an announcement.

In 2019, the racing body commenced legal proceedings against Tabcorp in relation to disputes concerning the calculation of fees payable by Tabcorp following the introduction of point of consumption tax (POCT) in Queensland in 2018.

According to today’s release, Tabcorp and Racing Queensland have entered into an agreement to settle the legal proceedings. This agreement will see Tabcorp pay Racing Queensland and the Queensland Government a combined total amount of $150 million (excluding GST).

Tabcorp has prepared for this by previously disclosing a contingent liability of $75 million post tax and $108 million pre-tax.

Queensland wagering industry reforms

The aforementioned settlement remains conditional upon the commencement of legislation that will implement proposed reforms by the Queensland Government.

These proposed reforms relate to the wagering taxation and racing industry funding model and include an increase to the POCT rate to 20%, payable by wagering operators.

Upon these reforms taking effect, key industry agreements with Racing Queensland will terminate, resulting in a level playing field and Tabcorp paying wagering taxes and racing product fees on the same basis as other wagering operators.

This is a bigger positive for the company than it might first seem and explains why the Tabcorp share price is charging higher today.

Tabcorp’s Managing Director and CEO, Adam Rytenskild, was very pleased with the news. He explained:

Online betting has changed the market substantially since TAB’s licences were issued. On a relative basis, TAB currently pays double the fees to the local racing industries compared to other wagering operators. Going forward we will all pay the same in Queensland. I commend the Queensland Government for delivering fair and much needed reforms that bring the wagering market into line with the modern economy.

The post Why is the Tabcorp share price racing higher today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tabcorp right now?

Before you consider Tabcorp, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tabcorp wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
3 ASX All Ordinaries shares defying the sell-off to surge higher
These were the worst performing ASX 200 shares in May
What’s dragging on the Tabcorp share price today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info