On May 10th, 2008, Tabcorp Holdings Incorporated commented that they are very unhappy with the decision of the Government officials of Victoria to modify the structure of the gambling industry in the state. The structure of the gambling industry on 2012 will be that on gaming, it will be venue-based model, which hotel facilities and pubs will possess gambling machine licenses. On betting, the present single-license structure will still be used.
In the game of keno, there will one keno license, with its reached expanded to different kinds of venues together with a liquor license and betting services. In the gaming aspect of Victoria, Tabcorp commented that the brand new industry is a huge change from the present model. Under the brand new structure from 2012, gambling machine licenses will not be possess by two gaming operator but will be possess by hotel and club venues. The Gaming industry is a huge part of Tabcorp's earnings.
In the first part of 2008, Victorian gambling contributed around $118.7 million in EBIT (earnings before the Interest and Tax), which is equal to 25pc of Group EBIT. As part of the brand new gaming structure, the Victorian Government refuses to fulfill its obligation to give back the license fee paid by Tabcorp, which is worth $597 million.
Chairman John Story commented that they are very proud of their achievement and their three hundred employees. He said that over the pas fourteen years, they have given high quality products and services to the people of Victoria while maintaining the highest standard. He added that that they are very disappointed by the government's decision regarding the license issue.
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John Sullivan
