How the f*** do they conclude that a merged pool will result in larger dividends? The ONLY way for the TAB to increase the average dividend is to reduce the percentage they take out of the pool and I can't see that happening until the frost starts settling on the ground in hell!

Chris,

If the Unitab merger is successful how long do you think it will be before the combined entity makes a move on the Tabcorp TAB wagering division (or at the very least the smaller TABs such as TAS, ACT & WA)? The ACCC might step in to stop a takeover - but then again they may not given that each TAB is a virtual monopoly anyway. Then there would be nothing to stop the take being increased!

Also I am curious about you betting with IAS but wanting a single pool! A single pool would effectively wipe out the advantage you get through the DIVI+ product. I estimate the benefit of DIVI+ is currently around 8% (ie. returns are an average 8% higher with Divi+ than with a single TAB account). With the merger of NSW/Unitab I believe this will reduce to around 5% advantage. Were the 3 TABS to merge we lose it all (unless they were to change the DIVI+ product to pay a much bigger premium over the TAB dividend).