Tabcorp profits up 26%; advertising reform absorbed

Tabcorp reported FY26 net profit after tax of AU$46.3 million, up 26.5% year on year. Revenue came in at AU$2.6 billion. CEO Gillon McLachlan used the ASX investor call to publicly endorse the Albanese government's amendments to the 2001 Interactive Gaming Act, calling them a "sensible set of reforms" and stating Tabcorp is "well positioned" to absorb any impact.

The advertising reforms, passed by the federal government, impose new restrictions on how gambling products can be marketed in Australia. The specific provisions are still being implemented, but the direction of travel is clear: tighter rules on timing, placement, and volume of gambling ads.

Tabcorp's endorsement of the reforms is not altruism. It is a calculated positioning move. Large, regulated incumbents with established distribution, retail infrastructure, and compliance teams absorb regulatory cost more efficiently than smaller digital-first operators. When compliance becomes more expensive, the playing field tilts toward the incumbent.