Tatts takes levy fight to High Court

Tatts and Tabcorp are heading to the High Court to challenge a ruling over the payment of $42.6 million in levies to the Victorian government.

Tatts Group headquarters.

Tatts is hoping the High Court will stop it from having to pay millions to the Victorian government. (AAP)

Gambling firms Tatts and Tabcorp hope the High Court will stop them having to pay millions of dollars in poker machine levies to the Victorian government.

The companies are seeking special leave from the High Court to appeal a Victorian court decision that they pay a $42.6 million health benefit levy to the government.

They are challenging a successful appeal by Treasurer Michael O'Brien of a ruling in 2013 that significantly reduced the $42.6 million in levies imposed on Tatts and Tabcorp.

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.

But Victoria's Court of Appeal On July 1 overturned a decision by the Supreme Court on the levy payment, forcing Tatts and Tabcorp to pay the levies.

Tatts and Tabcorp on Monday said they were taking the case to the High Court.

Tatts said its earnings would be hit by about $25.7 million as a result of having to pay the levy.

Tabcorp estimates it will suffer a $19 million hit to its earnings.

"If special leave is granted, Tabcorp will seek to have the Supreme Court of Victoria's earlier decision reinstated," Tabcorp said in a statement.


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