Tatts Pokies operated over 13,000 gaming machines in Victoria starting from 1994. However the company’s licence expired on 16 August 2012 and was not renewed.
The expiration of the licence led Tatts to sue The State of Victoria for compensation under a contract government signed with them in the mid 1990s. In the contract the Victorian state government signed, Tatts Group would be entitled to compensation for the infrastructure they had to pay for to set up their Tatts Pokies operation. The government materially benefited from this infrastructure.
The government argued that the contract stated that compensation would be paid if «licences» were granted to any other party from 2012, but instead they granted «entitlements» to other operators and thus alleged they didn’t have to pay the compensation.
On 26 June 2014, The Supreme Court of Victoria found that the «entitlements» were in effect licences under the contract government signed, and awarded Tatts Group $451,157,286 Australian Dollars plus court costs and interest.
Tabcorp Holdings also sued The State of Victoria under a separate agreement it had made with government, however the Supreme court of Victoria said that their agreement clearly only referred to the specific licences of the time and thus Victorian Government owed no compensation to Tabcorp. Tabcorp has since appealed this verdict.
On 8 July 2014 The State of Victoria lodged an appeal in an attempt to avoid paying Tatts Group the compensation. Tatts has stated it will defend the appeal.
Talarius PLC operates gaming machine arcades in the United Kingdom under the brands Quicksilver, Winners and Silvers. The company operates more slot machines in the United Kingdom than any other company, with 7,461 machines spread across 173 venues. Tatts Group sold the UK slot business in 2016 to Austrian gambling equipment manufacturer Novomatic Group.