Tabcorp Holdings Limited v Victoria [2016] HCA 4: Compensation for Licences

An appeal from the Supreme Court of Victoria Court of Appeal has been unanimously dismissed today (2 March 2016) by the High Court in Tabcorp Holdings Limited v State of Victoria [2016] HCA 4. The Court found that Tabcorp Holdings Limited was not entitled to payment by the State of Victoria under s 4.3.12(1) of the Victorian Gambling Regulation Act 2003 (the Act). The Court found that there was no “no grant of new licences” in the matter.

Background

Under the Act, Tabcorp concurrently held a wagering licence and a gaming licence. The gaming licence in particular authorised Tabcorp to conduct gaming on gaming machines at approved venues in Victoria. Section 4.3.12(1) of the Act contained a relevant ‘terminal payment provision’ and provided that "[o]n the grant of new licences", the holder of the former licences would be entitled to be paid a certain amount by the State.

In 2008, it was announced that Tabcorp’s gaming licence would not be renewed and further, the State provided amendments to the 2003 Act so that no further wagering licence or gaming licence could be granted. In 2009, the State once again amended the 2003 Act to provide for a new authority called a ‘gaming machine entitlement’. A GME permitted its holder to conduct gaming on an approved gaming machine. 27,500 GMEs were created. They came into effect on 16 August 2012, being the day after Tabcorp's wagering licence and gaming licence expired. The result was that the gaming operations which Tabcorp conducted under its gaming licence ceased and were then carried on by the holders of GMEs.

Legal Issue

Tabcorp claimed that the granting of the GME was equivalent to the ‘grant of new licences’ clause under s 4.3.12(1) of the Act as the licences were substantially similar to the previous gaming licences. The primary judge dismissed Tabcorp’s claims on the basis that the licences granted under s4.3.12(1) was confined to new licences granted under s4.3.12(1)’s encapsulating Part 3 of Chapter 4.

High Court

The High Court unanimously agreed with the Primary Judge. It held ultimately that as no new wagering licence or gaming licence were issued to Tabcorp under Part 3 of Chapter 4 to the Act, Tabcorp was not entitled to payment under the terminal payment provision. 

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Tabcorp Holdings Limited v State of Victoria [2016] HCA 4