‘Ladbrokes lounges’ to launch in pubs despite Tabcorp legal fight

English wagering giant Entain has signed a deal to launch a “Ladbrokes lounge” inside a Western Sydney hotel despite a legal fight with rival Tabcorp over advertising promotions in pubs.

London-based Entain signed a deal with the Australian Hotels Association’s NSW division in October to promote its Ladbrokes and Neds brands in the state’s pubs. The deal sparked legal action from the industry’s dominant player, Tabcorp, which has a monopoly over betting in pubs in NSW and across the country.

Despite the legal fight, Entain has now confirmed it will launch its first Ladbrokes lounge on a new greenfield site at The Star Hotel in Seven Hills, which is due to open early next year. The venue is owned by Momento Hospitality Group, which owns 16 pubs across greater Sydney including the Friend in Hand in Glebe and the Bella Vista Hotel.

NSW Hotels chief John Whelan said more than 800 of the 1050 NSW wagering hotels had reached out to Entain seeking “competition and choice” over the past 10 weeks.

“This is a significant first step in the roll-out of our new arrangement with Entain,” Whelan said.

Entain’s retail general manager Mark Sturdy said the partnership with Momento was a “game changer” and was the “first of many partnerships” with pubs in the state.

NSW pubs and clubs are exclusively allowed to operate Tabcorp’s retail wagering in their venues thanks to a long-standing state licence the group extended in 2013 to 2033.

After Entain signed its deal with the AHA, Tabcorp launched legal action alleging the two parties have not provided sufficient information about their agreement.

This masthead revealed earlier this year that Tabcorp would waive up to $50 million in revenue by giving pubs and clubs across Australia free access to Sky Racing by 2024, as part of a push to claw back market share from rivals including Entain.

The wagering giant charges about 4875 pubs and clubs across the country $12,000 a year to stream the Sky Racing channel, which shows thoroughbred, harness and greyhound racing. But some venues have questioned the value of the subscription with many high-profile races are now available on free-to-air.