Last month, the Supreme Court ruled that the Victorian government should pay Tatts Group and TabCorp upwards of $450 million for disbanded their pokie duopoly. As you can expect, the state government has decided not to go down without a fight and will be appealing the ruling.
In 2012, the Victorian government decided to disband the pokie duopoly that was held by Tatts Group and TabCorp by transferring their games licenses to club and pub owners across the state. The two operators made no secret of the fact that they were unhappy with the decision and they did not hesitate to state that they would take legal action to recover revenue that would be lost by having their licenses transferred.
After a long legal battle, the Supreme Court ruled in favour of the two poker machine operators. The state government would have to pay Tatts Group and TabCorp the $450 million in damages plus interest of $89 million, but Victoria feels that the sum is extortionate. Local politicians feel that the money could be better spent, and that it should be put towards funding public facilities and programs.
“This is $540 million that we are being ordered to pay that we would rather spend on schools and on hospitals. And that we are at this vulnerable position as a result of today’s judgment, subject to appeal, is very much one that I think the community should be concerned by,” says State Treasurer Michael O’Brien.
The appeal was lodged three days ago, as the Victorian government prepares to continues its legal battle against Tatts Group and TabCorp. While few other details have been released about the appeal, TabCorp has announced that it will defend against it.
This is certainly going to be a long and drawn out situation, and we will keep you posted with further updates as the story develops.
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