Gambling firms Tabcorp and Tatts will have to pay millions of dollars in poker machine levies to the Victorian government after a Supreme Court ruling was overturned.
The Court of Appeal of the Supreme Court of Victoria has allowed Treasurer Michael O'Brien's appeal of a ruling made 12 months ago that significantly reduced the $42 million in levies imposed on each of the companies.
Tabcorp and Tatts had argued they should not pay the full amount of the government's health benefit levy for operating poker machines in the 2012/13 financial year, as they lost their duopoly over pokies operated outside of Crown Casino 46 days into the year.
Tatts expects the the Victorian government's successful appeal will have a $25.7 million impact on the company, as it had set aside about $7 million to cover its liability.
Tabcorp expects its 2013/14 earnings to be impacted by about $19 million.
Both companies said they were considering their options, which could include an appeal to the High Court.
Tatts last week won a separate legal battle against the Victorian government, related to the expiration of its poker machine licence in August 2013.
The government was ordered to pay Tatts compensation of $450 million, plus interest, and Premier Denis Napthine has since said it will appeal the decision.
Tabcorp lost its compensation bid.
