Tasmanian Government Liable For Tote Failure
Friday, May 11, 2012 :TASMANIAN GOVT MAY BE LIABLE FOR SPORTSBETTING SITE FAILURE
Tatts Group and employees have indemnity
The demise of the Tasmanian Tote-owned online bookmaker Sports Alive may have come back to haunt the State Government as a Melbourne Supreme Court heard this week that new owner, the Tatts Group and Tote employees have indemnity.
The then State-owned tote invested $5 million in the online bookmaker that subsequently collapsed owing millions.
According to ABC.net.au, court testimony on a liquidator’s examination said the Tote was aware of Sports Alive's flailing financial position as well as a possible breach of betting regulations.
David Galbally, the liquidator's lawyer said the State Government could be open to claims in light of the Tatts Group's indemnity.
Premier Lara Giddings, commenting on where the State Government is exposed or not, said: "Of course that would be of concern to us but we are a long way off even knowing if that is a problem."