Entain Looking Into Possibility of Free Australian TV Airing

Article by : Milena Petrovska Feb 15, 2024

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Entain, a global gambling brand, is reportedly considering the option of providing Australians with a free TV channel. Media outlets report that the channel will broadcast various racing events and promote gambling products.

As a leading iGaming and betting brand globally, opening another channel for reaching customers is a natural step for Entain. While the idea is still in its conception stage, it could bring lots of changes for Entain and other industry players if it comes to fruition.

Main Aim – Disrupting Sky Racing’s Market Monopoly

The main goal behind the free-to-air TV channel is to stop the monopoly that Sky Racing currently has in Australia. Sky Racing is owned by Tabcorp, Australia’s biggest betting and entertainment business.

According to insiders, Entain is ready to offer up to $8 million for channel renting per year. A report by the Australian Financial Review even revealed that the company opened up talks with some of the country’s leading networks like Ten, Seven, and Nine.

One of the biggest issues that Entain would face is securing racing rights. If the company succeeds in its intentions, it will break Tabcorp’s influence in Australia and diversify the services for Australian punters.

The whole model would be based on the Racing.com channel, which started as a partnership between Racing Victoria and Seven Network. Seven then backed out in 2020 to begin broadcasting Australian thoroughbred races every Saturday.

Entain Could Enjoy Several Benefits With a Long-Term Deal

If Entain obtains the rights to a free-to-air TV channel, it would disrupt Tabcorp’s influence. Tabcorp’s Sky Racing only allows viewers to watch various events via two streaming services – Kayo and Foxtel.

By entering the market, Entain would be able to reach a much broader audience. Naturally, wider audiences mean more profit opportunities via sponsorships and deals. More exposure and profit potential can come in handy for Entain, especially after Barclays reduced its rating for the company and downgraded it to “equalweight.”

According to the financial institution, Entain has limited free cash flow, and its recovery is not straightforward. However, Barclays noted that the appointment of a new CEO could help the industry giant get back on the right track.

Multichannel Deals Explored by Major Betting Companies

Multichannel deals and sponsorships can be beneficial for both Entain and betting companies. They are the result of the recent efforts to crack down on gambling ads in Australia. Reports state that Australians spend the most on legal gambling per capita.

The idea of stopping gambling ads comes from research that Australians also lose the most money on online gambling in the world. In total, the figure reaches $25 billion per year.

Free TV noted that making gambling ads illegal would be a huge blow to media companies. They indicated gambling ads as the main factor behind the sustainability of TV networks.

By securing their own TV channels, Entain and other major companies can diversify their marketing options. Thus, they will shield themselves from the potential disadvantages of the crackdown.

At the moment, securing a multichannel deal is just a part of Entain’s initiative for reorganization. High-ranked employees may leave, one of whom is Peter Marcus. He is the operations director and has been working at Entain for more than eight years.

Entain also confirmed that it backed out from around 140 unregulated gambling markets, which aligns with the company’s dedication to sustainable and responsible operations.