Tatts and Tabcorp have lost their bid for a $1.2 billion poker machine payout

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Betting and gaming companies Tatts and Tabcorp today lost their final legal battle to be paid a combined $1.2 billion in compensation for lost control of poker machines in Victoria.

The High Court backed the Victoria government against compensation claims over a 2008 decision giving control of poker machines operated by Tatts and Tabcorp to pubs and clubs.

The two companies wanted to be compensated for lost income and value under an agreement going back to 1995

Tatts must now repay the state $540.46 million plus interest back to 2014 and is also liable for costs. Tatts says the decision is not expected to affect its ability to continue a high annual dividend payout ratio.

Tatts shares were down more than 6% to $3.64.

Tabcorp wanted $686.83 million but was never paid. It says today’s court decision brings to an end proceedings which have been running since August 2012. Its shares were up 0.12% to $4.32.

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