A recent decision by the local government will require poker machine club owners to pay $35 per month on each of the 27 500 non-casino pokies in Victoria. They have resisted the new tax and are prepared to fight it, as they believe that it is a result of a government mix-up.
The tax has been imposed to cover a bill worth at least $20 million owed to Tatts Group and TabCorp for 6 months of their monitoring systems. When Intralot took over for the two operators in September 2011, the rushed deal resulted in the company to use Tatts and TabCorp’s monitoring systems for at least six months. For the use of their systems, the two companies requested $24 million but Intralot was only prepared to pay $6.6 million.
As a result of the transgression, local club owners are now being forced to cover the difference. Since it was a mix-up between pokies operators and the local government, pub owners feel that it is not their responsibility to pay the tax. They feel strongly about the issue and are willing to fight the tax; however, the government is unlikely to budge.