Dear Valued Partner,
We are experiencing unprecedented times as a result of the coronavirus (COVID-19) outbreak.
Tabcorp has been working to provide its industry partners and your members with an update following various announcements from the Prime Minister regarding the closure of licensed venues. Now, more than ever, it is vital that we have a well-considered and aligned approach as to the next steps.
We’ve been working through this and many other inter-related issues in response to the impact of the COVID-19 outbreak. Following extensive engagement, Tabcorp can advise the following:
- Relevant fees under our SKY, TAB, Keno and MAX contractual arrangements will be payable by licensed venues up to the close of business on 22 March 2020. This is, of course, the day prior to the first government shut down order.
- All payment obligations for the following month will be suspended in light of the government ordered shutdown, and Tabcorp’s obligations under those contractual arrangements will also be suspended during this period.
- We will continue to review the position in respect of each subsequent month taking into account further developments, such as additional government directions.
- Where applicable, alternative arrangements will be agreed with venues, such as extensions of long-term fixed contracts equivalent to the cumulative period of the payment suspension.
In order to support industry through this difficult period, the interim measures described above are being implemented despite the terms of relevant venue contracts. (1).
We anticipate that the shutdown may last several months, but we recognise the position is fluid hence we will be reviewing the circumstances each month to allow for maximum flexibility (as set out above). Our teams will be contacting impacted venues with details of the specific commercial arrangements that will apply for each relevant business.
We would also like to note Tabcorp’s appreciation for the support packages announced by governments and the banking industry, especially those which support the family and small businesses of local pubs and community clubs across Australia.
We very much value our partnership and we are committed to keeping you informed and actively engaged as this situation evolves.
We welcome your support and commitment to working together throughout this challenging period for our people, our customers and the community at large.
Chief Executive Officer
(1) Tabcorp’s existing rights under those contracts are preserved.