Tabcorp Files Big Claim to State of Victoria

A$686.8 million sought from provincial government This week, the Australian gambling giant Tabcorp made a claim with the Supreme Court of Victoria for an A$686.8 million payout from the Victorian provincial government based on the terms of a 1994 agreement. It is claimed in its court filing that the state's obligation to it dates back to 1994 when Tabcorp privatized the Victorian TAB and listed Tabcorp on the Australian Securities Exchange. Further on, the company noted that the Gaming and Betting Act 1994 provides for a payment by the State of Victoria to Tabcorp on the grant of new licenses, whether Tabcorp is itself the new licensee or not. "The obligation to make the payment was subsequently recognised by the State of Victoria, including in its annual Budget Papers, over a 14 year period from 1994 until 2008," Tabcorp said in its statement. "In 2008, the former Victorian Government formed the view that Tabcorp would not be entitled to the payment. The legislation provides that the payment must be made no later than 23 August 2012. "The Tabcorp Board considers that the company is entitled to a payment, and that the Board has a duty to Tabcorp's many individual shareholders to pursue that entitlement." However, Victoria won't surrender without fight – Premier Ted Baillieu assessed that Tabcorp's action amounted to suing the people of Victoria, stressing that his government will stand up to this, defend the state's position, and protect the interest of all Victorians.