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TATTS ACQUIRES TOTE TASMANIA
Sunday December 4,2011 : Tasmanian Government will still benefit after completion of sale
The on-again off-again sale of the Tasmanian TOTE has ended with the State of Tasmania entering into a binding agreement to sell the entity to Tattsbet Limited.
TattsBet Limited will pay an upfront consideration of A$ 118.4 million and the potential for a further A$ 15.4 million derived from a GST cash refund owed to the TOTE. In addition, TOTE may be entitled to certain future GST benefits of up to A$4 3.6 million, which Tatts has agreed to remit to the Government as and when they are received.
Under the terms of the deal the State of Tasmania will continue to receive an annual wagering levy from the TOTE, estimated at over A$ 6.5 million. Tatts has agreed to maintain certain service obligations, including the provision of ongoing access to the TattsBet pool, wagering on Tasmanian racing, a free to air racing radio service, supporting local employment and retaining the TOTE's Tasmanian call centre.
Following completion of the deal, the TOTE's customers will have access to the full range of TattsBet products, including both its pari-mutuel and fixed odds offerings.
“This sale is a great outcome for the people of Tasmania and will mean the State will no longer be directly exposed to the significant risks associated with ownership of a betting agency in an increasingly competitive wagering market,” said Premier Lara Giddings.
Finalisation of the deal is subject to various regulatory approvals, including the Australian Competition and Consumer Commission, and is expected to complete by end March 2012.
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