Tabcorp, considered the largest gambling industry of Australia, has taken necessary measurements in view of the COVID-19 outbreak. The aim was to overcome the adverse effects on employee performance. Due to COVID-19, they closed their licensed betting outlets and all the agencies of TAB. Also, Tabcorp has had to cancel all the events related to sports.
Moreover, Tabcorp was about to introduce a few new betting opportunities, like the Belarusian Premier League. They had to cancel that too because of the pandemic. Everything happened so quickly that they did not even have a chance to generate their compensation for a limited profit. They may have produced it from their customers as they have more customers investing or participating in their most famous sporting games within Australia. And undoubtedly, their sports competitions are quite popular globally.
However, after facing this crisis because of COVID-19, Tabcorp came up with a decision to provide temporary furlough to their workers. They have more than seven hundred workers, and Tabcorp gave short term furlough to all of them till 30th June 2020.
All the operational work is at a standstill, and employees are not allowed to enter in Tabcorp work areas due to the outbreak. They also discharged roughly one hundred and sixty technology contractors. These contractors represent almost a 40% reduction.
All the charges that they were liable for during April in 2020 by the venues operating under TAB, Keno, Sky Racing, and Max contracts, are no longer active. Furthermore, they decided to set a review for every month to assess the status of COVID-19.
The company has anticipated that this business will not have any new consumption. The first half of progress would bear up to a 25% loss, and it may decline by at least AU$120 million.
Tabcorp also extended its banking facilities along with some short-term additional facilities. These facilities are worth approximately AU$226 million. Also, they can pay the amount this year or the year after the COVID-19 lockdown is over.
Proactiveness of Tabcorp in COVID-19 outbreak:
Other than the points mentioned above to tackle the adverse effects the company was facing because of the coronavirus lockdown, Chief Executive Officer, David Attenborough faced a 20% payment deduction till the financial year ends.
The Chief Executive Officer has educated others on the topic that the business has dealt with severe challenges due to the coronavirus outbreak. He has claimed they are working with all stakeholders to solve the problems they are facing. Due to the shutdown, they still plan on standing back up after this catastrophe.
The company decided to deduct the chairman and even non-executive director’s salary by 10%, even though a 10% deduction already took place during September in 2019.
Since sports events are canceled and postponed, its services are highly affected. However, Tabcorp states that its lottery and other specialties are operating as usual. Even its convenience stores and other outlets are still operating.