The duopoly held by Australia’s largest gaming companies, Tabcorp Holdings and Tatts Group, over 27,500 gaming machines is to be ended. The government of Victoria has announced that 10-year licences will be offered to venues when the Tabcorp and Tatts agreement expires in 2012. Approved pubs and clubs will be allowed to bid directly to own and operate their own pokies if granted a licence.

Both Tabcorp and Tatts say they will seek compensation for refunds on their A$597 million licence fee, although the government has already said that neither company is entitled to any such refund. Victoria will maintain its cap on gaming machines outside Crown Casino at 27, 500 and no one operator will be allowed to own more than 35% of available machines. The venue limit will be maintained at 105 gaming machines and regional caps will also remain.

Crown Casino, which operates 2,500 slot machines, holds its licence until 2033. It will not be entitled to bid for machines in other venues. According to the Victorian Minister for Gaming Tony Robinson, “These reforms will deliver greater transparency and accountability to local communities. Over the past 15 years the gambling industry has matured – what was right for the industry 15 years ago will not be right for Victoria post-2012.”

Premier John Brumby has said that the government will put in place favourable funding arrangements for the Victorian racing industry after its 25% share of Tabcorp gaming machine profits ceases in 2012. Other reforms to the gaming industry structure are that keno operations will be offered as a single specific licence, and a single stand-alone licence will be offered for wagering, which is currently run by Tabcorp.

Legislation giving effect to today’s announcement will be introduced in Parliament in two stages, commencing next week. The Registration of Interest for keno and wagering is expected to occur during 2008. Under the new arrangements, approved hotels and clubs would bid directly for 10-year gaming machine entitlements in early 2010. A progressive tax system covering electronic gaming machines will be introduced to help create a level playing field between small and large venues.

The Government will work with the gaming industry’s peak bodies and other stakeholders on transitional matters and also to assist and educate all venue operators and other interested parties on the implementation and transition phases of the new arrangements. Details of the new tax arrangements will be developed in consultation with stakeholders and finalised in advance of the bidding process.
(E-04.10.08)

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