Pokie operators Tatts Group and TabCorp have been embroiled in a legal battle with the Victorian government for over a year. After their pokie duopoly was disbanded, both companies took action against local politicians over what they felt were unfair circumstances. While the Supreme Court sided with them on many issues, a recent ruling has required them to pay the full Health Benefit Levy despite their opposition.

The Health Benefit Levy collect poker machine revenue to find charitable organisations and healthcare facilities. For the 2012-2013, Tatts Group was ordered to pay $42.6 million and TabCorp was to pay $42 million. However, their pokie licenses were transferred to clubs and pubs 46 days into the financial year, so the operators felt that they should not pay the full levy.

For Tatts Group, this would have meant that the levy would be worth just $7 million. According to the Sydney Morning Herald, Judges Maxwell, Beach and McMillan upheld the state’s imposition of the Health Benefit Levy. While the pokie operators argued that it was unfair to ask them to pay the full amount, the judge agreed with the state government’s case.

Treasurer Michael O’Brien stated that there is no law requiring him to calculate the levy on a pro-rata basis, and the argument seems to have held up. "The Treasurer was bound to determine the tax payable in accordance with the prescribed formula,” the judges said in their ruling. “Any unfairness which might be thought to have resulted was the inescapable consequence of the provision as enacted.”

Despite this loss, Tatts Group and TabCorp are still big winners in the grand scheme of things. The two operators also took the Victorian government to court for damages due to the disbanding of their duopoly. They were awarded $450 million in total, which certainly offsets the cost of the Health Benefit Levy ruling.  

About the Author

George Anderson
Author George, has over 25+ years’ experience in the Pokies and Casinos industry throughout Australia and New Zealand. Loves to research new Pokies games on the block and follows announcements from top industry providers about their upcoming releases. As soon as a new interesting pokie game appears on his radar, George is there to check it out and give you the scoop before anyone else and tell you about all casino sites where can play the latest game. Before this gig, George worked as Pokie game tester, making him an ideal candidate for this genre of work. He is also an animal lover and a proud owner of three dogs.