The Tabcorp Holdings Limited (ASX: TAH) share price was on form on Tuesday.
The gambling company's shares ended the day up 1% at $1.06.
Image source: Getty Images
What drove the Tabcorp share price higher?
There were a couple of catalysts for the rise in the Tabcorp share price on Tuesday.
One was a rebounding ASX 200 index, which lifted most shares. The other was news that the announcement of wagering tax changes in New South Wales. Tabcorp believes the latter is "a further positive step toward industry reform."
What's happening?
From 1 July 2022, New South Wales will increase the Point of Consumption Tax (POCT) rate payable by wagering operators from 10% to 15%.
Tabcorp will receive transition payments over an 18-month period from the commencement of these changes to ensure it is no-worse off relative to its current tax obligations as a result of the changes.
Had these transition payments not been applied, based on Tabcorp's calendar year 2021 NSW revenues, its EBITDA would have been approximately $16 million lower.
Tabcorp's Managing Director and Chief Executive Officer, Adam Rytenskild, was pleased with the news but will push for further reforms.
Today is a positive step forward in levelling the playing field in NSW. Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system.
We welcome the NSW Government's announcement. Online betting has changed substantially since the TAB's licences were issued and this is an opportunity to better align with the modern economy. The Queensland Government has recently announced reforms to create a level playing field and NSW is now a step closer to a level playing field.
How have Tabcorp's shares been performing since the demerger?
Following today's gain by the Tabcorp share price, it is now trading marginally higher than where it ended the day following the Lottery Corporation Ltd (ASX: TLC) demerger.
On 24 May, the company's shares closed the session at $1.055 cents, just a touch lower than current levels.
Though, it is worth noting that Tabcorp's shares continued to slide in the days that followed and closed at 90.5 cents on 1 June. So, anyone buying at that point would have done very well.
