Tatts hits jackpot in Australia court ruling, Tabcorp loses

    The Supreme Court of Victoria has handed down its verdict in a case related to compensation for the loss of operating monopolies, finding in favour of Tatts Group, but against a similar claim by Tabcorp.
    The court found the state is liable to pay Tatts more than $451.1 million, plus interest and costs, which the company estimates at about $89.1 million.
    Tatts sued the state for compensation following the expiry of its gaming operator’s license in 2012. The company said it had an accord dating back to 1995, under which Victoria would receive “substantial” license fees from Tatts’ pokies business on condition it would receive compensation should a license be awarded to other companies.
    However, the court declined a $686 million compensation request from Tabcorp. It instead accepted the state’s argument that changes made to legislation in 2008 and 2009 implied a repeal of a statutory provision that would have entitled the company to compensation.
    Tabcorp has 14 days to lodge an appeal to the court’s decision. Tabcorp said it sees no financial impact from the ruling.