Tatts Group has filed a $600 million lawsuit against the Victorian government, after its poker machine duopoly (with TabCorp) ended. The company was led to believe that it would receive compensation if the duopoly was shut down, but a loophole has made it possible for the government to get away without paying the company, and Tatts is looking for its rightful stake. As such, Tatts is suing the local government for the $600 million in compensation it was promised.
In 1990, a duopoly was enacted in Victoria, which gave Tatts and TabCorp the right to operate all of the poker machines in the state. The groups were told that their licenses would either be renewed in 2012 or they would receive compensation. Instead, the government changed the licenses to entitlements, meaning that neither company would receive compensation nor renewal.
So, it is no wonder that Tatts Group is incensed over the change of events. The government did not hold up its end of the bargain; however, a lawsuit does not seem entirely above board. Suing the local government would result in money being taken from the health and education systems, which would put the community at a disadvantage over a professional disagreement.