By Andy Young
Tabcorp Holdings has announced that it will partner with Rupert Murdoch's News UK to launch a UK and Ireland online wagering and gaming business.
The new business will be known as Sun Bets and is scheduled to launch in 2016.
Tabcorp managing director and CEO David Attenborough said: "Entering the UK market in partnership with News is an exciting opportunity for Tabcorp as we take our capability into the A$7 billion UK online gambling market. The Sun has more than 10 million readers per week and over one million football fans actively engaged through The Sun Dream Team FC fantasy football competition.
"This partnership provides us with the opportunity to create a leading online bookmaker in the UK market under the Sun Bets brand over the coming years and fits with our strategy of pursuing close-to-core international opportunities."
The partnership is subject to Tabcorp gaining the required UK licences and approvals and is initially scheduled to run for 10 years. The deal will be extended subject to performance.
Rebekah Brooks, CEO, News UK said: “This deal with Tabcorp marks a pivotal moment in the digital transformation of the company, creating a world-class online sports book that will engage and entertain the betting public in the inimitable style of The Sun.
“The two powerful brands of The Sun and our Dream Team fantasy football competition already have incredible reach and I have every confidence that this will be a rewarding partnership, which will see Sun Bets firmly established as a key player in the online betting business.”
The partnership is structured as a revenue share arrangement with News UK undertaking internal and external media promotion of the business. In return, Tabcorp will provide News UK with a share of the revenue from the new business each year.