Sun Bets shuts as Tabcorp pays £40m exit fee

Sun Bets is closing down today after its Australian operator Tabcorp announced it had bought its way out of the contract.

In an update to the Australian Stock market today, Tabcorp said it will make a payment to News UK of £39.5m to exit the agreement.

Sun Bets has emailed customers telling them it will shut down today, and their funds will remain safe.

Tabcorp CEO David Attenborough said the site’s performance had been below expectations for 18 months and no material improvement was expected.

“While we didn’t get it right, we have taken valuable learnings from the Sun Bets start-up process and operations which will inform our approach across our portfolio,” Attenborough said.

“I would like to acknowledge the Sun Bets team for their efforts in building the business from start-up phase.

“We continue to have a strong relationship with News Corporation.”

Tabcorp said the total Sun Bets related loss could run to nearly £60m for the financial year ended June 30.

A spokesperson for News UK said: “The Sun is the number one newspaper and digital news brand in the UK and we have launched many successful brand extensions such as Sun Bingo and Dream Team. We are increasingly confident in the reach and power of the brand and will firmly remain in the betting and gaming business. We now look forward to executing our vision”.

EGR understands The Sun Bets site could be down for up to six months as News UK looks for a new sportsbook partner, with Playtech thought to be a front-runner.

However, with the Tabcorp contract officially closed, News UK will do its due diligence with a number of sportsbook suppliers.