Tabcorp said it has launched an appeal against a judgement handed down by the Supreme Court of Victoria, rejecting its claim for $686.83 million ($645 million) in compensation.
Tabcorp claims that the state was obliged to make the payment in 2012 when the company lost its wagering monopoly in the state. It said the claim was based on a statutory provision that was included in 1994 legislation, when the state privatized Tabcorp and listed the company on the stock exchange.
However, the court accepted the state’s argument that changes subsequently made to legislation in 2008 and 2009 implied a repeal to those provisions.
In a related ruling, the court found in favour of a similar compensation request from Tatts and said the state is liable to pay the company more than $451.1 million, plus interest and costs.
Victoria in turn said it is appealing that decision.
Hot on the heels of the court ruling granting compensation to Tatts, the state won a court victory over levies due to the government.
Both Tatts and Tabcorp said they will need to take a charge to their results after The Court of Appeal of the Supreme Court of Victoria upheld the Victorian Treasurer Michael O’Brien’s assertion that Tatts should pay a $42.6 million health benefit levy. It will also have to pay interest of about $1.7 million, according to company estimates.
Tatts said it will need to take a charge of about $25.7 million to cover the ruling, while Tabcorp expects its 2013/14 earnings to be impacted by about $19 million.
Both companies said they were considering their options, which could include an appeal to the High Court.