But Tabcorp chief executive David Attenborough said competition from online bookies such as Sportsbet,BetEasy and Ladbrokes had eased off since"point of consumption"taxes came into effect in NSW,Victoria,Western Australia and the ACT at the start of the year.
The measures - already in place in Queensland and SA - tax gambling losses based on where bets are placed,rather than where a bookmaker holds its licence. Most online bookies are registered in the low-tax Northern Territory,which meant they were paying far less tax than TABs.
Mr Attenborough said online bookies had been forced to"cut their cloth"to cope with the new taxes,which had"led to us being able to be more competitive with them".
"People have increased their pricing…. we’ve seen some reduction in some of the marketing spends and we’ve seen some more sensible'generosities'being put out there,"he said.
Loading
Revenue in Tabcorp's bookmaking business still fell 3.6 per cent and its profit fell 7.9 per cent last year. Mr Attenborough said the business would be boosted next year by the full integration of TAB and Ubet,as part of the Tabcorp and Tatts merger implemented last year.
Revenue from Tabcorp's lotteries and keno business - which include Powerball and Oz Lotto - grew 22.8 per cent and earnings (before interest,tax,depreciation and amortisation) jumped 29 per cent to $509 million.