When Victoria disbanded its pokie monopoly, operators Tatts Group and TabCorp lost out on valuable gambling revenue. However, there are some companies that have received an addition boost, thanks to the change. Woolworth is one such operator, experiencing a jump in profits worth millions of dollars. Last year, Victoria disbanded a duopoly held by Tatts Group and TabCorp.

The two operators previously reaped profits from all of the poker machines located in the state. However, the local government decided that it would be more beneficial if pub and club owners were to operate their own pokies, taking the profits for themselves. This week, Woolworth’s released its half-year profits for the end of 2012, indicating a 19.3% jump to $759 million.

While the company did not state how much of the extra money was earned as a result of the regulatory changes, financial experts believe that Woolworths will reap an additional $70 million every year. While Woolworths is earning millions more every year, Tatts Group is struggling as a result of having lost half of Victoria’s pokie profits. Tab has recovered from the loss, having found solace in its online betting operations.

Unfortunately for Tatts Group, its lottery products are not as fruitful as its poker machine business was. So, the company is exploring other outlets. Thanks to the regulatory changes, things have certainly improved for Woolworths in Victoria. However, the company will have to deal with the aftermath of the state’s ATM ban, which prohibits all pokie venues from hosting cash machines.

The ban has resulted in a $60 million decline in pokie spending, but Woolworth’s remains optimistic. “This impact was expected and we believe it will recover as customers adjust to the new regime,” says a spokesperson for the pokie operator. The company’s prediction could be correct. While the initial decline was quite sharp, we anticipate that it will not last for long.

Should spending continue to decline, it will likely do so at a moderate level in the future.

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.