Take a punt on hidden value

There are two things to know about Tabcorp’s current state: its money-for-jam lotteries business is even better than it looks, and its wagering division is being grossly undervalued by a recent takeover offer.

Let’s start with lotteries. As the pandemic took hold last year, we suspected Tabcorp’s lotteries monopoly would be one of the few businesses to benefit. With a year’s worth of data in hand, any doubt is now long gone.

While retail outlets were closed, punters migrated online: digital sales now represent 32% of lotteries turnover, up from 27% before the pandemic. The difference was even more pronounced for Keno games, whose digital