From http://www.smh.com.au:
Gambling shake-up in Victoria
By Christian Catalano
March 3, 2006
THE Bracks Government's bid to maximise returns from gambling in Victoria is gathering pace with the release of four issue papers for the review into the gaming machine, wagering and Club Keno licences.
Victoria's Gaming and Racing Minister, John Pandazopoulos, called for submissions from industry stakeholders and members of the public yesterday, making it clear that the present licence holders, Tabcorp and Tattersall's, would not breeze through the process.
"One of the factors to be considered is whether Victoria retains the current licensing systems," Mr Pandazopoulos said.
"The Government wants to ensure the right structure is in place to achieve the best possible outcome for Victoria."
Though both incumbents have an enormous edge in the race to secure the licences beyond their 2012 expiry, industry analysts said the Government had designed the process to attract bids from new players.
"It just looks as though this review will be far more wide-ranging and much less of a rubber-stamping exercise than it has been previously for Tatts and Tabcorp," said Shaw Stockbroking analyst Greg Fraser.
Racing Victoria and Queensland's UNiTAB have both hinted they might bid for Tabcorp's wagering licence, while Mr Pandazopoulos's office has suggested the gaming machine licence - held by Tabcorp and Tatts - could be rearranged to give control to individual venue owners.
Although licence renewal is a standard business risk for any gambling company, Mr Fraser said the Government rhetoric had been largely responsible for "creating uncertainty for the share prices" of both operators.
Tabcorp shares have fallen more than 13 per cent and Tatts about 9 per cent since September.
One factor in Tabcorp's favour is a $600 million break fee that the Government must pay if the company does not retain its wagering licence. A similar arrangement exists for the gaming machine licence Tabcorp and Tatts hold.
Victoria's lotteries licence is also being reviewed and Mr Pandazopoulos's office has indicated it may issue up to three licences once Tattersall's monopoly licence expires next year. Tatts lodged its own bid last week. |
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