ERROL PARKER | Editor-at-large | Contact
Australia’s leading wagering company, TAB, has somehow announced a loss of $1.4 billion for the 2024 financial year. The revelation has left industry experts questioning how a company designed to profit from gambling could fuck things up so spectacularly.
The loss, which includes a $1.38 billion writedown of “assets” in South Australia and New South Wales, has prompted newly appointed CEO Gillon McLachlan to vow an overhaul of the company’s strategy. McLachlan, who recently transitioned — from his role as AFL CEO — expressed confidence in turning around the company’s fortunes despite the massive shortfall.
“We’ve had a challenging year, but I’m optimistic about the future. At least we don’t have to pay tax this year and we’ll have a lot of losses and depreciation to carry forward, too,” McLachlan said in a statement.
“But you know, I’ve only been in the job for 2 weeks so it’s not like it’s my fault, is it? But, we’re currently reviewing all aspects of our operations to ensure this kind of financial outcome doesn’t happen again. How exactly we managed to lose $1.4 billion is something we’re still trying to fully understand. It’s a lot of money, isn’t it?”
Analysts have expressed disbelief over the scale of the loss, noting that the role of a bookmaker is traditionally to take money from customers, not lose it. The writedown of assets in key states, coupled with increased operating costs, has been cited as the primary reason for the company’s poor financial performance.
“It’s almost unimaginable that a bookie could end up in this situation. Their entire business model is built around minimising losses, yet here we are discussing a billion-dollar deficit,” said one shareholder to The Advocate.
“What’s the point of investing in a business that’s not profitable? What am I buy? Good vibes? Certainly not with these bastards.”
McLachlan acknowledged the challenges posed by increased regulation and the ongoing cost-of-living crisis but remained hopeful.
“Yes, the numbers are significant, but I’m confident we can recover. After all, if we’ve learned anything, it’s that nothing is impossible—not even a bookmaker losing money.”
More to come.
