The McGowan Government has scrapped its plan to sell the WA TAB – the country's last state-owned betting agency – after more than three years of looking for a suitable buyer.
The government says it has been unable to find an offer which meets the government's "policy objectives", after reports that deals worth upwards of $1 billion collapsed.
"Significant time and effort have been committed in an attempt to deliver an outcome that balances the long-term interests of both the state and local racing industry," Premier Mark McGowan said.
"Despite exhaustive efforts, a balanced outcome cannot be achieved."
In a statement, the government said it had "progressed negotiations with a preferred respondent" who was unable to "confirm the necessary financial commitments" to allow the sale.
Racing and Wagering WA (RWWA) will continue to operate the WA TAB under the state government's ownership.
Racing and Gaming Minister Tony Buti said not a single bidder gave "certainty" throughout the sale process that they would be able to ensure the best interests of the industry and taxpayers.
"The Western Australian racing industry should rest assured that Racing and Wagering Western Australia will continue to operate the WA TAB to the benefit of the local racing industry," he said.
Legislation was passed in 2019 to allow the sale of the TAB, along with an allowance for any successful bidder to offer electronic simulated racing games in TAB outlets, despite a ban in WA on poker machines and simulated racing games outside the Crown Perth casino.
The hope from the McGowan Government was to secure the future of the racing industry, as the TAB was reportedly running on cash reserves at the time.
But the move to enable virtual racing products in TAB outlets sparked warnings from experts that it would open the floodgates for "the most dangerous form of gambling".
The initial sale process was halted in August 2020 due to COVID-19, but was recommenced at the request of Racing and Wagering WA (RWWA), which has voiced its disappointment at the unsuccessful sale.
"The racing industry acknowledged that the time was right for the sale and was willing to embrace the new funding arrangements that flowed from it," CEO Ian Edwards said.
In a statement, RWWA said despite the disappointment, it would continue to "run the WA TAB for the benefit of the WA racing industry".
"[The RWWA] will maintain its strong financial, regulatory, and animal welfare oversight across all codes," the statement read.
"The board believes the RWWA team has demonstrated its capability to successfully operate the WA TAB in a highly competitive environment over the past decade, while increasing prize money, supporting clubs and investing in infrastructure."
Country Racing WA President Kevin Scott, who was on the panel for the sale of the TAB, said the announcement gave some certainty to the industry after a sale process that had "gone on for too many years".
"It's caused too much uncertainty in the industry of where we've been going. Now, as of today, we've got some certainty," he said.
"We'll continue to run it the way it's been run – or if we can even make it better – that'll give us more money for our industry."
