By Ian Neubauer
The gaming giants paid just under $600 million each to Victoria for their gaming licenses in 1995 and last week demanded the state refund the monies under threat of legal recourse.
But the Victorian Government warned Tabcorp and Tatts Group that it withheld the right to change the condition of their licences in a letter sent to the companies in 1995, The Australian reported.
Signed by former Victorian treasurer Alan Stockdale, the letter noted: “Victorian Parliament has the power at any time to amend existing legislation or pass new legislation affecting your operations or the terms on which those operations are conducted.”
Tabcorp and Tatts Group will also have to take into account the coming tender for the $700 million Victorian wagering licence and the importance of maintaining good relations with the state government in the lead-up to the tender.
The current Victorian wagering licence is held by Tabcorp and expires in four years. Tatts Group holds wagering licences in Queensland, South Australia and the Northern Territory, and is expected to make a strong bid for the Victorian licence.