Australian gambling heavyweights Tabcorp and Tatts are putting the boxing gloves on but instead of fighting each other, the two companies are suing the Victorian government for compensation that they believe are due them after their gaming licenses had expired.
The two companies believe that the government owes them more than $1.5 billion stemming from a dispute that began in 2008 when the government decided to restructure the pokies system and move away from the duopoly both companies enjoyed over Victoria’s $2.3 billion poker machine industry since 1994. As far as Tatts and Tabcorp are concerned, they’re entitled to the payout because their licenses weren’t renewed, a clause that was set out in the 1994 Gaming and Betting Act.
Naturally, the Victorian government isn’t going to take the matter with its proverbial pants down. At least not without a fight. According to the government’s position, both Tatts and Tabcorp have no business pouting and chasing after all that money because the said law they’re basing their fight on has since been repealed, rendering their side pointless and inconsequential.
On top of that, the licenses both companies used to hold are different from the current entitlements being issued to pubs and clubs across the state.
A lot’s at stake in this legal battle for both sides. Tabcorp is asking for a whopping sum of around $787 million from the Victorian government while Tatts is looking to get $590 million plus interest.
The on-going hearing is scheduled to last for another three weeks, at which time we’re all going to have a clearer idea on who’s coming out of it with heavier on the pockets.
Should both gambling firms get what they’re looking for, the state stands to lose about $1.5 billion. That has a lot of 0′s in it, last time we checked.
