Former AFL Chief Gillon McLachlan set to lead Tabcorp amid industry challenges

Australian gambling company Tabcorp has announced a leadership change with the appointment of Gillon McLachlan as its incoming Managing Director and Chief Executive. McLachlan, well-known for his tenure as the CEO of the Australian Football League (AFL), will assume his new role in August pending necessary approvals.

McLachlan acknowledged the complexities ahead for Tabcorp, emphasizing his attraction to the challenges posed by the competitive landscape dominated by international wagering giants. 

"I'm attracted to the challenge," McLachlan remarked. "To state the obvious, I've not led an ASX-listed company before, but in the end, I think the principles of leading the AFL apply: direct communication, transparency, and hopefully getting the job done."

McLachlan's appointment comes at a critical juncture for Tabcorp, which has been navigating a series of strategic transformations amid increased competition and regulatory scrutiny. The company's share price, which had experienced a decline following its demerger from the Lotteries Corporation in 2022, saw a modest rise on Monday following the announcement.

Bruce Akhurst, Tabcorp's Executive Chair, expressed confidence in McLachlan's capabilities, citing his extensive experience in both the wagering and sporting sectors. Akhurst, who previously worked alongside McLachlan in other roles, described him as a proven leader capable of steering Tabcorp through its current challenges.

McLachlan's transition to Tabcorp follows a recent role as a senior advisor for Blackstone, the US private equity firm that owns Crown Resorts, marking a return to the corporate sector after his departure from the AFL. His stance on gambling advertising, previously articulated during his AFL tenure, aligns with Tabcorp's support for stricter regulations.

"There are different views on what balance looks like," McLachlan stated regarding the intersection of gambling, sport, and broadcasting industries. "You've got [the government] weighing up their decisions and then there's the companies themselves with their own views."

The appointment, however, has not been without criticism. Tim Costello, Chief Advocate for the Alliance for Gambling Reform, expressed skepticism, questioning McLachlan's prior dealings with gambling firms during his AFL tenure. Costello highlighted perceived conflicts of interest, pointing to McLachlan's past facilitation of commercial partnerships between the AFL and betting companies.