Morningstar expects penalty for Australia's Tabcorp after probe, cuts valuation

ReutersMay 10, 2026 6:47 PM

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Morningstar expects Tabcorp Holdings TAH.AX to be fined after regulator AUSTRAC commenced an investigation into co's compliance with anti-money laundering and terrorism financing obligations

Wagering firm's stock fell nearly 35% over last two sessions following disclosure of regulatory scrutiny from financial crimes watchdog

Morningstar notes investigation is at its early stages, with all options open including possibility for no further enforcement action

But when AUSTRAC commences a high-profile investigation, it usually results in at least an undertaking, if not a fine - Morningstar

Tabcorp Chairman Brett Chenoweth said last week the board and executive were committed to collaborating with the watchdog on uplifting co's money-laundering and terrorism-financing risk maturity

Morningstar assumes an A$120 million base case penalty for Tabcorp

Investment research firm cuts fair value estimate by 4% to A$0.96, says shares now screen as "undervalued"

We think the lack of detail around the investigation has spooked the market, with share price fall implying an A$500 million fine - Morningstar

Tabcorp down 23.7% YTD, as of last close

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