Tabcorp Holdings Limited and News UK have today announced the signing of an agreement to partner in the launch of a new online wagering and gaming business in the UK and Irish markets. The business will be known as Sun Bets and will launch in 2016.

The new business will bring together Tabcorp’s capability in global wagering with News UK’s vast customer base and market-leading media assets, including The Sun newspaper (print and digital properties) and associated sports and racing products (such as Dream Team FC, Favourite and Goals).

The agreement is structured as a revenue share arrangement with News UK undertaking internal and external media promotion of the business. In return, Tabcorp will provide News UK with a share of the revenue from the new business each year.

The agreement is subject to Tabcorp obtaining the necessary licences and regulatory approvals and runs for an initial term of 10 years, with extensions subject to performance.

Tabcorp Managing Director and Chief Executive Officer David Attenborough said:

Entering the UK market in partnership with News is an exciting opportunity for Tabcorp as we take our capability into the A$7 billion UK online gambling market.  The Sun has more than 10 million readers per week and over 1 million football fans actively engaged through The Sun Dream Team FC fantasy football competition.

This partnership provides us with the opportunity to create a leading online bookmaker in the UK market under the Sun Bets brand over the coming years and fits with our strategy of pursuing close-to-core international opportunities.

Rebekah Brooks, CEO, News UK said:

This deal with Tabcorp marks a pivotal moment in the digital transformation of the company, creating a world-class online sports book that will engage and entertain the betting public in the inimitable style of The Sun.

The two powerful brands of The Sun and our Dream Team fantasy football competition already have incredible reach and I have every confidence that this will be a rewarding partnership, which will see Sun Bets firmly established as a key player in the online betting business.