Tabcorp Holdings‘ Chief Executive, Gillon McLachlan, has asserted that the company is “well positioned” to absorb any impact Australia’s newly approved gambling advertising reforms may bring.

Speaking to ASX investors after the firm published its FY26 financial report, McLachlan described PM Anthony Albanese’s government’s changes to the 2001 Interactive Gaming Act as a “sensible set of reforms”.

“In an absolute sense, they are a sensible set of reforms,” he said. “I think that our outlook factors that in. I think that the reforms target areas that they should, which is those with vulnerabilities, and ultimately allow businesses to still promote sensibly and the industry to grow.

“In a relative sense I think we’re very well positioned, with 3,500 retail outlets, with Sky Media, with a set of assets that are clear and established both in racing and in sport, and to be more tactical, we are not impacted by some of the … we agree with the majority of the recommendations and in part are already there.

“I feel they are a set of recommendations that are contemplated in their outlook, and in a relative sense I think that we are very well positioned.”

McLachlan’s remarks contrast sharply with fellow industry stakeholders and gambling reform campaigners. Kai Cantewell, CEO of the Responsible Wagering Australia (RWA) trade body, for example, was very critical of the reforms last week, particularly the inclusion of opt–out service for online advertising.

Advocates for greater reform, like the Greens, rebellious backbencher MPs of the Liberal National Coalition opposition and governing Labor party, and independent MPs like David Pocock, have slammed Prime Minister Albanese’s reforms as falling short of the mark.

Regardless of the situation, Tabcorp believes it is well placed to retain its long-held position of market leadership in Australia in the face of strong competition from the likes of Entain, Flutter Entertainment, bet365, and more.

Where does Tabcorp stand in 2026?

Tabcorp’s FY26 finances (for the 12 months ending 30 June 2026) showed revenue growth of 0.8% to AU$2.6bn (£1.36bn). 

This should put Tabcorp ahead of its competitors, with Entain’s FY25 revenue (12 months ending 31 December 2025) down 6% in Australia, though it has rebounded in H1 2026, while Flutter’s revenue from the APAC region – of which Oceania is a core market – was down 1% in H1 2026.

The much more impressive figure for Tabcorp this year was its statutory net profit of $46.3m, up 26.5% from $34m. EBITDA was also up 10.3% from $387.3m to $431.7m.

This was despite operating expenses of $700.7m and capital expenditure of $140.1m.

However, Tabcorp has taken this as a sign that its focus on cost discipline and achieving returns on investments is paying off. A key investment focus in 2025-2026 was its retail offering, with the TAB outlets still the dominant betting venues on Australian high-streets.

The first phase of Tabcorp’s planned upgrades to its retail terminals was completed in June 2025, prior to the reporting period. The second phase kicked off on 1 July 2026, just after the reporting period, but the firm is nonetheless confident that it felt the benefits in FY26.

Retail betting turnover during the World Cup in particular rose 57%, according to McLachlan.

Mark Howell, the group’s Chief Financial Officer, told analysts that Tabcorp expects its retail operations to bring about an EBITDA benefit by FY27. Leadership estimates that some 97% of its 3,500 retail venues are now operating in its new commercial model for the segment.

All in all, Tabcorp remains a dominant business in 2026. The company’s Tab retail and online betting offering continues to lead in Australia, while the Sky Racing and Sky Racing World media channels have a tight grip on horse racing media distribution in the country.

Group net debt has also been chipped away at, down by $76.3m to $533.1m.

The group enjoyed revenue growth across fixed-odds sports and racing betting, with the former up by 8% according to McLachlan. 

Further growth is expected once its live wagering product, greenlit by the Australia Communications and Media Authority (ACMA) earlier this year, is fully taken live.

However, leadership did note that parimutuel betting, which accounts for around a third of Tabcorp’s business, has been declining by “roughly 5% or 6%” year-over-year.

And while Tabcorp may be confident it will ride out the forthcoming regulatory changes outlined above, expected to come into effect in January, better than its competitors, it is not entirely out of the woods on this side of things.

The Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia’s finance industry regulator, opened an investigation into the company in May relating to anti-money laundering and (AML) counter-terrorist financing (CTF) controls.

Tabcorp share fell off a cliff after the investigation, and while its price has recovered somewhat in the months since it is still way off the 2026 peak of $1.17 of 4 May. Its price as of the time of writing is $0.91.

Though not fully citing the AUSTRAC probe, Tabcorp revealed in its FY26 report that a “risk modifier” had been applied to McLachlan’s Short Term Incentive (STI), or bonus, for FY26, after recognising “regulatory and compliance matters during the year”.

This led to McLachlan’s bonus being reduced by 20 percentage points. His total earnings in FY26 were a salary of $1.46m and a bonus of $799,500. 

The reduction of his bonus has caught some attention in the Australian press, however, as has the May 2026 appointment of Paul Jevtovic, former AUSTRAC CEO, as Tabcorp’s Chief Financial Crime Officer.

Jevtovic was CEO of AUSTRAC between May 2014-April 2017. Just a month before he left the regulator to take an anti-financial crime role at HSBC, AUSTRAC issued a $45m civil penalty to Tabcorp over 108 breaches of Australia’s AML/CTF Act 2006.