Tabcorp wants out of its deal with Rupert Murdoch's News UK

Dan Kitwood/Getty Images

Australian gaming giant Tabcorp is negotiating an exit from the Sun Bets partnership with Rupert Murdoch’s News UK.

The diversified gambling entertainment group says a review has found that trading is “challenged” at the UK online wagering and gaming business.

“This review has concluded and Tabcorp is now in discussions with News UK about a proposal to exit its agreement to operate Sun Bets,” the company says.

“These discussions remain ongoing and an agreement has not been reached at this stage.”

The Sun Bets partnership was launched in 2016, bringing together Tabcorp’s capability in global wagering and News UK’s customer base and media assets, including The Sun newspaper and associated sports and racing products such as Dream Team FC, Favourite and Goals.

The agreement was structured as a revenue share with News UK responsible for media promotion. The Sun has more than 10 million readers a week and 1 million football fans.

Tabcorp, an ASX100 company, owns the TAB and Keno in Australia.

In December last year Tabcorp and Tatts combined in a $11 billion merger.

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