This month, it was announced that the Victorian government asked former local pokie operators TabCorp and Tatts Group to pay a total of $80 million for a Health Benefit levy. The two operators were outraged, and threatened legal action. Now, TabCorp has finally decided to move forward with its plans of taking the Victorian government to court.
The Victorian government cancelled TabCorp’s gaming contract, which consisted of a duopoly with Tatts Group, 46 days into the financial year. As such, the group should not have been required to pay the full Health Benefit – if any of it at all. For years, TabCorp and Tatts Group operated all of the poker machines in Victoria.
Last year, the local government decided that it would be best to disband the duopoly and allow the owners of the pokies to operate the games. The two companies conceded defeat and did not fight the decision. Now, they have become outraged that the Victorian government has insisted on charging them for the full health benefit. Tatts Group originally stated that it did not want to take legal action.
The company, which is facing a similar charge, wanted to open up a dialogue with the government before going to court. Apparently, TabCorp is not as patient. According to Treasurer Michael O’Brien, the first instalment of the levy is due on May 31st, and it is worth $31 million. TabCorp hopes to comes to a solution before the due date. While TabCorp prepares to go to court, Tatts Group has yet to take any action.
The company has yet to announce its plans for fighting the Health Benefit charge. Due to the gaming law changes, the Victorian government expects to earn $1.154 billion in gaming taxes. This would mark an impressive 7% increase on last year’s earnings.