Tabcorp (ASX:TAH) shares have fallen 11.8% to their lowest level since March 17, 2021.

The company, one of Australia’s prominent gambling platform operators, has seen a 6.1% drop in group revenue for the first quarter.

According to a recent trading update, the company is facing challenging market conditions, as noted by Jefferies.

The brokerage has indicated that smaller wagering operators in Australia may face an industry consolidation due to these tougher market conditions.

Unfavourable racing and sports results may bring about a further drop in revenue as weaker yields have been announced.

To date, TAH shares are 9.3% below their value for this year when considering the last closing price.

Tabcorp is a renowned gambling platform operator in Australia.