Victorian Government Awards $540 Million Settlement to Tatts Group
Tatts Group has been embroiled in a battle with the Victorian government for 2012, since the poker machine duopoly it held with TabCorp was disbanded. Over the course of the past two years, the two groups have sought compensation for the early termination of their gaming contract – and, now Tatts Group has finally been awarded a generous ruling by the Supreme Court.
The duopoly was launched when Victoria’s Brumby government provided TabCorp and Tatts Group with power over the state’s 27,500 poker machines. The contract was supposed to last for 18 months, but it was terminated early when it was decided that control of the pokies would be transferred to the owners and operators of the clubs and pubs. According to The Age, the government was advised by lawyers that it would not have to issue compensation to the poker machine operators.
Tabcorp was not at all pleased with the turn of events, and argued that the company should receive a payment of $640 million from the government. Tatts Group also requested compensation worth $540 million. TabCorp’s request was dismissed and Tatts Group’s application was approved. The Victorian government recently attempted to appeal the decision, but the claim was rejected.
“The trial judge upheld Tatts’ claim under this agreement,” reads a statement from the court. “The Court of Appeal has also upheld that claim for substantially similar reasons”.
Although Tatts Group and TabCorp were dealt a serious blow when their pokie duopoly was disbanded, the two companies have continued to experience success in the local gaming market. TabCorp has seen a generous boost in profits thanks to its dedication to online gambling while Tatts Group has rebranded and is looking for opportunities in the digital gambling world.