Australian Online Gambling Companies Look For AFL Deal

Added: July 24, 2014

Australian online gambling sites are getting a whiff of a massive sponsorship deal with AFL, the country’s football organization. Currently the Australian gambling giant Tabcorp has an exclusive four-year sponsorship deal with AFL. But this agreement ends in 2014 and it is expected that there will be immense competition between online gambling companies for a share in the new sponsorship. Conservative market estimates put the new deal to be worth around A$ 350 million a year.

One of the lead contenders is the Australian division of the United Kingdom gambling company William Hill. This was reported by the Australian newspaper The Age over the weekend. William Hill Australia is presently headed by the experienced and Aussie-savvy Tom Waterhouse. Also in competition is BetEasy, an Internet sports book founded by equally experienced industry veteran Mark Tripp. According to information with Tripp, the new sponsorship with AFL will have a different structure. He said that the deal this time will not be with one particular online gambling operator. There will be several companies in the sponsorship mix. He added, “I will certainly be one of them that will be putting my hand up. Providing the commercial terms are reasonable, I will throw my hat in the ring for sure.”

It has been reported that Tabcorp will not give up its advantage easily and will resist the introduction of the multiple sponsorship format. The company's chief wagering officer, Craig Nugent, said that Tabcorp will try to extend its current exclusive contract. Tabcorp and AFL go way back to 2006 and have always had the best of relationships. Besides, Tabcorp is Australia's most trusted gambling brand. It is because of these reasons Nugent will be looking at extending the partnership for 2015 and beyond.

The current AFL sponsorship contract covers a wide range of media products such as television, Internet live streaming and radio networking. This is why major online and mobile gambling firms are making a beeline for it. Presently there are some restrictive obligations in the contract as well. For example AFL can veto certain bet types to protect the game’s integrity. But this does not appear to bother the hopeful entrants like Tripp. Tripp has made a big name for himself in the Australian online sports betting market. He bought Sportsbet in 2005 for $250,000 and sold it in 2011 for $380 million to Paddy Power. Now he wants to ensure that BetEasy becomes a market leader.