Reuters New Media Australia's Tabcorp, Tatts may lose gaming duopoly Thursday April 10, 2008, 6:11 pm
(Adds company statements, paras 15-18)
By Ben Wilson
SYDNEY, April 10 (Reuters) - Australian gaming firms Tabcorp Ltd (ASX: TAH.ax) and Tatts Group TTS.AX face losing their duopoly over slot machines in the country's second-most populous state, a major revenue driver, under planned gambling law changes.
The government of the southern state of Victoria said on Thursday that under the reforms, hotels and clubs would be able to own and operate their own gaming machines from 2012, removing the need for separate operators such as Tabcorp and Tatts.
Trading in the two companies' shares was halted as they prepared responses to the decision.
"It's a massive change," said one gaming analyst who asked not to be identified. "It's moving the profits from the industry to the pubs and clubs."
"There's a material amount of value lost for Tabcorp and perhaps a little bit higher in percentage terms for Tatts."
Victorian gaming revenues made up over a quarter of Tabcorp's first-half revenues, while Tatts Pokies venues across Victoria contributed more than 40 percent of Tatts' first-half revenues.
The decision is the latest setback for the Australian gambling industry after an outbreak of horse flu last year that halted some racing, and comes as authorities face increasing pressure to deal with problem gambling on games machines, known as "pokies."--- Continues// End Quote
I think I can remember that a TTS Director was selling recently.
No responsibility taken for any losses in association with this Posting.
Regards,
moly
TTS Price at posting:
0.0¢ Sentiment: ST Sell Disclosure: Not Held
