Robert Edge, IAS Chief Executive, announced to have completed the due diligence phase and to hold a 76% stake in the Norfolk island based company, with an option to move to 100% ownership.
“We are satisfied that AusTote will be a very good business for IAS”, said Edge.
“During the last two months, we have seen average pool sizes double at AusTote and operating margins have actually improved.”
AusTote has the ability to freely advertise the service in all Australian states, something which even IASbet cannot do because of various state laws prohibiting advertising across state borders.
The laws commonly provide an exemption however for “totalisators licensed by a state or territory government”, intended to facilitate a privileged position for what were formerly state owned TAB\’s.
“When those laws were drafted however, no one could conceive of tiny Norfolk Island, a Territory with its own Parliament and equal status with the Australian Capital Territory and the Northern Territory, licensing a privately owned totalisator,” said The Virtual FormGuide.
Edge said to be looking at the best way to promote AusTote as a low cost totalisator operator.
“We intend to aggressively expand the service into other areas like harness and greyhound racing as well as sports betting.”
AusTote founder Mike King, a former Chief Minister of Norfolk Island, retains the remaining shareholding in the totalisator operator.
Calculators
