Tabcorp has been hit with a new levy on its gaming machine operations for the 2013 financial year.
The gaming group said its 2013 earnings will be impacted by an estimated $18.3m after tax as a result. The government of the Australian state of Victoria informed the company of its decision to apply a levy on May 6.
The levy has not been applied pro rata and does not reflect that Tabcorp ceased to operate gaming machines in August last year when its gaming licence expired.
Known as the Health Benefit Levy, the levy was first introduced by the Victorian government from July 1, 2000, and applied to each electronic gaming machine the company operated in the state.
Tabcorp said it is considering commencing legal proceedings to ensure the levy is applied on a pro rata basis.
