Tabcorp Holdings Ltd
(ASX:TAH) will provide $150 million of funding to facilitate the merger of two New South Wales racing clubs as well as the redevelopment of Randwick racecourse.
The gambling operator says it has reached an agreement with Racing NSW and the NSW Government which is conditional on approval from the two clubs, the Sydney Turf Club and the Australian Jockey Club.
Details of the funding arrangement are expected to be announced after Cabinet approval, and Tabcorb says implementation will start after the necessary administrative, regulatory and legislative changes.
Racing NSW chairman Alan Brown says the funds will be put towards redevelopment at Randwick racecourse and to upgrade facilities at Rosehill, with projects including more grandstands and improved road access to the areas.
In the 2010 financial year, Tabcorb posted a $469.5 million profit.
