Tabcorp shares have taken a hit after the gambling giant was served with a damages claim from Racing Queensland, believed to relate to the calculation of fees under the state's new consumption tax.
Tabcorp said the claim lodged in the Supreme Court of Queensland on Friday afternoon sought damages and other relief under two arrangements between the Queensland's racing authority and Tabcorp subsidiary UBET.
Tabcorp said it expects to "defend its position vigorously" but would be undertaking further analysis and review.
"The company is currently reviewing the issues raised and the relevant legal claims made by Racing Queensland and will update the market in due course," Tabcorp said in a release to the ASX.
Shares in the company dipped by 1.34 per cent from $4.49 to a three-week low of $4.43 following the announcement, and closed the day 0.67 per cent lower at $4.45.
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Earlier on Friday Tabcorp announced it had hired AusNet chief financial officer Adam Newman to fill the same role.
