The government of the Australian Capital Territory is looking to sell its ACTAB betting operation rather than invest any more money into it.
State Treasurer Andrew Barr said a recent study by Pricewaterhouse Coopers determined that the state would have to invest “tens of millions of dollars” for ACTAB to remain viable in the face of increased competition. Chief Minister Katy Gallagher said that finding “makes a very compelling case for pursuing alternatives to government ownership.”
The government hasn’t publicized an asking price yet.
ACTAB generated A$2.1 million in profit in 2011-12, but the PwC study said the local market is “under threat from interstate wagering operators,” and therefore the state should expect a 3.6 percent compound annual decline in pre-tax profits over the next four years.
A final decision on a sale is expected in November.