News from AAP

Gaming firms score court win over Vic govt

Print This Post A A A

Victoria’s two big gaming companies have won court action against the state government over levies of more than $42 million imposed on them.

The Victorian Supreme Court on Monday ruled in favour of Tatts and Tabcorp in their joint legal action against the Victorian Treasurer Michael O’Brien, challenging his determination that they each pay health benefit levies of about $42 million for the 2012/13 financial year.

The companies say they operated gaming machines in Victoria for only 46 days of the financial year, losing the right to operate poker machines in venues other than Melbourne’s Crown Casino on August 15, 2012.

On Monday, they issued statements on their court win.

“The court found in favour of Tatts and set aside the treasurer’s determination to impose a health benefit levy upon Tatts in the amount of $42,607,106,” Tatts said in the statement.

“The court found that the treasurer was not compelled to make a determination in this amount and that he erred in making the determination on the basis that he had no discretion.”

Tatts said it was waiting for the treasurer to reassess the levy “by the proper exercise of his discretion.”

Tatts had set aside about $7 million to pay the health benefit levy.

In its statement, Tabcorp said the matter will go back to the Victorian government to make a fresh determination on the levy.

“Tabcorp intends to submit to the Victorian government that the discretion should be applied to calculate the levy on a pro rata basis, referable to the 46 days Tabcorp operated gaming machines in the 2013 financial year.”

The health benefit levy was introduced in July 2000 and applied to poker machines operated in Victoria to help fund hospitals and charities.

After the court ruling, Mr O’Brien issued a statement in which he said the health benefit levy operates under legislation introduced by his Labor predecessors.

He said the government would respond to the judgment in due course.

“The coalition government is determined to put Victorian taxpayers first in seeking a resolution to this matter,” he said.