Tabcorp shares get hit as greyhound racing is banned

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Shares in Tabcorp Holdings fell hard after NSW announced a ban on greyhound racing from July next year.

A short time ago, the shares were down more than 7% to $4.26.

NSW greyhound racing represents around 5% of Tabcorp’s total wagering turnover.

However, Tabcorp says it expects people to shift betting on other events such as thoroughbred racing, harness racing, sport and animated racing.

Tabcorp’s media business, Sky Racing, will work with other Australian and international racing industry bodies to source alternative racing product.

NSW has banned greyhound racing in response to investigations which found up to 20% of trainers used live baiting and 180 greyhounds a year sustain “catastrophic injuries” during races that resulted in death.

Tabcorp in May reported third quarter revenue of $518.4 million, up 1.9%. Year-to-date revenue was $1.654 billion, also up 1.9%.

However, the cost of fighting court action for non compliance of anti money laundering rules and of launching a new business in the UK have taken a toll on its profits.

The gaming group’s profit fell by 33.1% to $81.9 million for the six months to December.

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