Tatts Group and TabCorp were none too pleased when their pokie duopoly was cancelled by the State of Victoria. The two groups sought compensation and justice, and the ruling has taken quite some time to be handed down. Now, the Supreme Court is finally weighing in on the matter, which could result in Tatts Group claiming hundreds of millions of dollars from taxpayers.
It is the most expensive judgement that has ever been awarded against the State of Victoria. The Supreme Court has ordered the state to pay Tatts $450 million plus compensation. In the end, this could amount to more than $540 million. “This is a very material blow to the state of Victoria. It’s a very material blow to the state’s Budget,” says State Treasurer Michael O’Brien.
“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”. The ruling seems quite excessive to local politicians, as other pokie license disagreements have been settled for much less money.
When TabCorp took the Brumby government to court over the government’s refusal to renew its license, the company lost out on $3 billion. TabCorp sought $700 million in compensation, but the case was dimissed. According to the Herald Sun, the amount of money that has been awarded to Tatts Group could have otherwise been spent in very productive ways.
$540 million is equal to the amount of money that the government had allocated to building and repairing schools across Victoria. The money could have also been spent on removing three level crossings.