For the past year, TabCorp and Tatts Group have been involved in legal battles with the Victorian government as both companies have sought compensation for having their poker machine duopoly disbanded. This month, Tatts Group had its request for compensation approved while TabCorp’s was denied – but the gaming provider will not go down without a fight.
The duopoly was granted in order to provide TabCorp and Tatts Group with the power to operate all of Victoria’s pokies outside of Crown Melbourne. The deal was supposed to last for 18 years – but the government backed out early in 2008, when it was decided that ownership of the pokies would be transferred to gaming club operators.
Both TabCorp and Tatts Group felt that they were entitled to compensation for having their duopoly disbanded early. Since poker machines are a hugely lucrative market, the two companies felt that they would be losing out on millions of dollars that they would have earned if they were in operation of the state’s pokies. TabCorp requested $686 million, but the Victorian Supreme Court ruled against the company.
Shortly after, TabCorp appealed the decision – which was also turned down. A statement from TabCorp reads: “If special leave is granted, Tabcorp will appeal the Court of Appeal's decision to the High Court of Australia and seek an order for a payment of approximately $686 million plus statutory interest from the state of Victoria,” Tabcorp said in a statement.
Now, it is up to the High Court of Australia to decide whether or not TabCorp will receive compensation. Since Tatts Group was recently awarded $540 million in compensation, TabCorp is confident that the High Court will decide in its favour.