A study by PricewaterhouseCoopers found ACTTAB was facing increased competition, limited options for growth and would need considerable government investment to remain viable.

While stating that no final decision had been made on privatisation, Chief Minister Katy Gallagher and Treasurer Andrew Barr made it clear the government would not inject additional capital into ACTTAB.

“The PwC makes a very compelling case for pursuing alternatives to government ownership of ACTTAB,’’ Ms Gallagher said.

In its report, PwC recommended that the government sell 100 per cent of ACTTAB but warned that this could lead to job losses.

“The ACT wagering market is under threat from interstate wagering operators. Consequently ACTTAB’s financial performance is in a state of decline,’’ the PwC report said.

ACTTAB management had estimated that there would be a 3.6 per cent compound annual decline in pre-government fee profits over the next four years.

“As a result the value of of ACTTAB to the territory is also in decline,’’ the report said.

Depending on the business plan adopted for ACTTAB by the new owner, some duplicated employment positions could be lost.

Mr Barr said the government would have to invest “tens of millions of dollars’’ in ACTTAB if it remained in public hands.

“The government’s not going to make that capital investment,’’ he said.

“Look at what’s happened in this market at around the country and around the world.

“Significant technological changes, use of smart phones and tablet and other devices. The sorts of investments that are required are significant.

“And then you’ve got to ask yourself the question, is that a business that the government should be in?’’

A final decision on a sale will be made in November.

Mr Barr said staff, unions and other stakeholders such as the racing industry would be consulted on what happens next.

“All appropriate mechanisms will be in place to ensure the interests of staff are protected,’’ Mr Barr said.

ACTTAB staff were briefed on the PwC report on Thursday morning.

Some sections of the PwC report deemed commercially sensitive would not be publicly released.

Mr Barr declined to discuss how much the government could expect to earn from a sale.

“We certainly would not be seeking to pre-condition the market at this point,’’ he said.

ACTTAB reported a $2.1 million profit in 2011-12.

Opposition treasury spokesman Brendan Smyth said the government had taken too long to consider ACTTAB’s future.

“The government has been aware since they came to office that the value of ACTTAB has been declining, that the gambling industry, the gaming industry has been changing a lot in that time,’’ Mr Smyth said.

“One would have to question why they’ve taken so long to get to this position.’’

The only other Australian government to own a TAB is Western Australia.

Comment was being sought from the United Services Union.