Last week, Tatts Group and TabCorp announced that they would be suing the Victorian government for cancelling their duopoly on poker machines in the state. The two companies want $1.2 billion from the government, feeling that they are entitled to compensation; however, the state of Victoria does not feel the same way.
For over a decade, Tatts and TabCorp operated tens of thousands of poker machines across Victoria. In 2008, the government announced that it would not offer compensation to the companies when their licenses expired; however, Tatts and TabCorp believe that they are entitled to it.
“A $1.2 billion hit on the Victorian budget would be a very significant hit and have a very significant impact,” says Baillieu. “The Victorian government will very strongly defend the state’s position and act in the interests of all Victorians.”
Premier Ted Baillieu believes that the lawsuit will have negative consequences for the state’s residents. Should the companies receive compensation, they would be taking valuable funds away from healthcare, educations and arts programs. As such, Baillieu announced that he will fight the lawsuit to protect Victoria residents.