Entain Explores Bid for Free-to-Air TV in Australia

Global gambling giant Entain is reportedly exploring a bid to secure direct access to a free-to-air TV channel targeting Australian audiences. The move aims to broadcast racing events, explore synergies, promote gambling products, and challenge the monopoly of Tabcorp-owned Sky Racing. Entertain’s previous broadcasting experience should provide substantial benefits, helping leverage a potential agreement.

Entain Is Not New to the Media Game

A recent Australian Financial Review report revealed that Entain, which owns prominent wagering brands like Ladbrokes and Neds, approached leading commercial networks, including Seven, Nine, and Ten, a few months ago. The proposal involved inquiring about the potential creation of a new platform for broadcasting greyhound, harness, and thoroughbred racing. 

Industry insiders claim Entain offered around $8 million per year to rent a channel, with Network Ten reportedly being the closest to a deal. While Entain has not finalized any agreement, the move signals an attempt to diversify broadcasting options. If successful, the model would be based on the Racing.com channel, initially a joint venture between Seven Network and Racing Victoria.

However, managing a dedicated free-to-air channel requires securing racing rights. Entain has previously struck a 25-year deal with New Zealand TAB, aiming to expand the audience and provide NZ racing with a more substantial presence in Australia. Success with the company’s newest media venture in the region would break Tabcorp’s control over the broadcast of state-based racing and hopefully bring significant dividends.

A Successful Deal Could Bring Long-Term Benefits

The multichannel deal for racing could be a strategic move for betting companies and TV networks to navigate an anticipated crackdown on online gambling advertising. A parliamentary inquiry recommended a complete ban on internet gambling ads, contributing significantly to media companies’ revenues. Diversified marketing options should shield Entain from such a crackdown, improving marketing opportunities.

Entering the free-to-air TV space should give Entain a significant edge in the Australian market. Tabcorp’s Sky Racing Channel, which offers content similar to Entain’s preferred offerings, is only available via Foxtel and the Kayo streaming service. A free-to-air entry by the gaming giant would significantly disrupt the current status quo, reaching broader audiences.

Exploring a multichannel deal is part of Entain’s broader reorganization initiatives. The company is undergoing a significant strategic realignment, accompanied by ongoing high-level management reshuffles. This newest expansion into broadcasting aligns with Entain’s ongoing efforts to diversify its operations and strengthen its position in the evolving wagering and broadcasting landscape.