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Betchoice Would Pay Extra Fee For Shopfronts
Betchoice boss Mark Morrissey told a Productivity Commission hearing into the gambling industry “he would be willing to pay an additional fee if his business were allowed to sell bets through shopfronts, a move which would end the retail exclusivity held by Tabcorp & Tatts Group,” reported The Sydney Morning Herald. Betchoice “offers bets on races nationally via phone & internet”, but Morrissey said he would be willing to pay a percentage of turnover in return for the ability to offer bets to punters in competition with TAB's retail outlets. Morrissey noted: “I think to get into retail we could do harm to (Tabcorp & Tatts retail revenues) because we have a far superior product. If we go head-to-head against (Tabcorp) in retail outlets with better prices, the punters will start betting with us & the lower margins will mean better returns (for punters).” Morrissey was referring to his ability to offer better odds “because of his low-margin business model”; corporate bookmakers “have a profit margin of about 6%, compared with about 16% for Tabcorp”.