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NEW AUSSIE LICENCE FOR TABCORP
Tuesday July 19,2011 : A$410 million fee paid by gambling group to Victoria
The Australian gambling company Tabcorp has paid A$410 million to operate the state of Victoria's new wagering and gambling licence, reports the Australian Broadcasting Corporation.
The 12-year deal gives Tabcorp the right to operate the state's only off-course retail betting network, as well as tote and fixed-odds betting. Tabcorp has had a monopoly on off-course gambling in Victoria for 50 years and beat a bid from competitor, Tatts Group.
The Victoria Gaming Minister, Michael O'Brien, says the deal is a windfall for Victorian taxpayers.
"This is a licence which has been evaluated based on technical ability, commitment to the racing industry in this state, probity, financial stability and also responsible gambling," he said. "That's a very important issue for us."
He added that the Tabcorp bid gave better returns to taxpayers: "Tabcorp provided the stronger bid and that is the recommendation I received and that is the decision I have made," he said. "The bid includes a premium payment upfront of A$410 million which in the current environment is a strong and fair value we think for this wagering and betting licence."
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