ASX ANNOUNCEMENTVictorian Gaming, Wagering and Keno Licences...

ASX ANNOUNCEMENT
Victorian Gaming, Wagering and Keno Licences post 2012
The Victorian Government’s announcement today on the future structure of the Victorian Gaming,
Wagering and Keno licences post 2012 will mean the end of the Tatts Pokies gaming machine
operations as they presently exist. In the four years remaining, the Company will adjust its
approach to its existing Victorian businesses, pursue the other opportunities presented by the
proposed industry structure and implement strategies to expand its business interests beyond the
gambling sector and Victoria.
Tatts Group will be adjusting its Victorian business model to maximise the profits available from
Tatts Pokies. This will include discontinuing capital expenditure by up to $40M annually and
gradually reducing operating expenses. These strategies are expected to lift the profits available
from this business in the four years left under the current licence.
Tatts Group sees opportunities beyond 2012 in Victoria. They include:
• Using its wholly owned subsidiary UNiTAB to bid for the Victorian wagering licence;
• Bidding for the Victorian gaming machine monitoring licence utilising the systems and
technology currently used by Maxgaming in Queensland and NSW;
• Extending Bytecraft’s current NSW, Queensland, South Australian and Victorian gaming
machine services business to all Victorian gaming venues;
• Seeking the Keno licence in Victoria; and
• Accelerating the Company’s current gaming venue ownership strategy.
Tatts Group will also use the next four years to pursue a number of diversification strategies in
areas that draw on similar IT and network management skills and capabilities. This could include
investments beyond the gambling sector. We have been working on these options during this
period of uncertainty and now we can pursue these strategies with purpose.
Importantly, we note the Government’s announcement in relation to the non-entitlement of Tatts
Group and Tabcorp to compensation. We believe this is an ambit claim. Any attempts on the
part of the Victorian State Government to fail to meet its clearly understood obligations to Tatts
Group will result in Tatts Group taking all necessary actions to protect its shareholder interests.
In addition to Tatts Pokies which operates a licence until 2012, Tatts Group will continue to own
profitable operating businesses which hold secure licences beyond 2012 in:
• Tatts Lotteries (QLD, ACT and VIC);
• UNiTAB Wagering (QLD, NT and SA);
• Maxgaming machine monitoring and jackpot services (NSW and Queensland);
• Bytecraft Services (nationally); and
• International gaming operations (South Africa and United Kingdom).
In the meantime, it’s business as usual.
A copy of the Victorian Government’s media release is attached.
Contact:
Michael Mangos – General Manager, External Communications
on +613 8517 7443 or 0419 551 980