SBC News Voice of the Sports Betting Industry
Australian gambling operator Tabcorp has won a $128.9 million (£64 million) tax benefit resulting from a payment it made to the Victorian government more than two decades ago.
The operator has contested tax charges of a combined value of $1.2 billion in compensation for the past two decades, relating to revenues generated by poker (‘pokie’) machines. Last Friday the Australian High Court voted to against the 2008 decision by the Victorian Brumby government to remove the companies’ duopoly to operate poker machines in the state.
To date Tabcorp has paid the government $597.2 million (£300 million) for wagering and gaming licences in Victoria when the state privatised the-then TAB in 1994 and listed it on the stock market. Last week the Australian licensed operator confirmed it had resolved with the Australian Taxation Office issues in relation to the payment.
Tabcorp realeased a short company statement commenting on the tax benefit
“As a result, Tabcorp will recognise an income tax benefit of $128.9 million in its financial statements for the year ending 30 June 2015. This benefit will be treated as a significant item.”
Tabcorp would further confirm it had approved its target dividend payout of 90 per cent of net profit for the 2015 financial year.
