Australian gaming machine operator Tatts Group has revealed that it has commenced legal proceedings against the state of Victoria’s Treasurer challenging its claim that the company must pay a Health Benefit Levy of more than AU$42.6m.
On May 6, the group received notice from the Victorian Treasurer that under the Gambling Regulation Act 2003 the company ought to pay the levy in respect of its gaming operations conducted in the financial year to June 30, 2013.
This, Tatts said, was despite the fact that its gaming operator’s licence expired in August the previous year and that its gaming operations in Victoria were limited to a period of 46 days. During that time, the group’s operations generated earnings before interest, tax and depreciation of approximately AU$29m – less than the amount of the levy claimed by the state for the same period.
Last week, the group announced that it had started proceedings against the Treasurer in the Supreme Court of Victoria. This follows an earlier announcement by gaming group Tabcorp that it was challenging the levy applied to its own gaming operations through the Victorian court.
