Australia’s Tabcorp has announced it will split off casino operations from its other gaming businesses and form two separate entities. The company has launched an effort to raise A$430 million to fund the new companies.

Heading the new casino enterprise will be Larry Mullin. Tabcorp, which will continue as a wagering company, will have David Attenborough at the helm.

Current CEO Elmer Funke Kupper said the decision to split the business made sense. He said the companies had been run as separate entities for several years and that, financially, it was the best possible time for the move. Recently, all three divisions—casinos, wagering and gaming—reported good revenue growth in the first quarter of the 2010-2011 fiscal year.

Funke Kupper will step down as CEO following the demerger and most likely take a seat on the board.

Tabcorp has been investing heavily in upgrading the Star City casino complex in Sydney, committing almost A$1 billion to the effort to lure the VIP market. Another A$175 million has been announced for the Jupiter casino on the Gold Coast in Queensland, with perhaps even more investment after discussions with the Queensland government.

Royal Bank of Scotland analyst Harry Theodore told the Courier-Mail that the demerger would spark talk of takeover vulnerability.

“It’s a cleaner structure that’s left post a demerger for any potential consolidation on either the casino or wagering sides,” said Theodore.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.