Sun Bets warning: Aussie giants Tabcorp in threat over firm's performance
Australian gambling giant Tabcorp have warned they will give "serious consideration" to ending their involvement in Sun Bets should the operator's performance not improve.
Sun Bets was launched in the UK last year following a deal with News Corp subsidiary News UK – publisher of The Sun – but Tabcorp's annual general meeting on Friday was told that trading had "disappointed" so far.
Revenue in the first quarter of their 2017-18 financial year was Aus$1.1 million (approx £642,000/€724,000), a rise of 5.3 per cent.
Tabcorp chairman Paula Dwyer said: "The strategic rationale for Sun Bets was to give us a position in the large and growing UK gambling market under the iconic ‘Sun’ brand.
"However, in the first 11 months of trading we were reminded of the challenges associated with start-ups, and the performance of the business did not deliver in accordance with our plans."
Dwyer said that as a result Sun Bets had undergone a review and its leadership had been strengthened.
She added: "The management team is now tasked with improving performance. If performance does not improve to meet forecast expectations, we will give serious consideration to exercising our contractual right to exit operations from December 31, 2019."
Sun Bets also found themselves under scrutiny from the Gambling Commission this year over the infamous "Piegate" incident involving former Sutton United goalkeeper Wayne Shaw.
Dwyer said: "We are working closely with the UK Gambling Commission, following a review, to ensure we meet regulatory expectations and build a sustainable compliance capability in our dealings with our customers, gambling products and markets."
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