The Victorian government has emerged from a High Court stoush with two gaming giants facing a possible $1.2 billion bill or having to pay nothing.
The government had a win against the Tatts Group, convincing the court to let it appeal the Supreme Court order that it pay it $540 million in compensation.
However the court also granted Tabcorp's request to appeal the Supreme Court's rejection of its $686 million compensation claim.
The case dates back seven years to the Brumby government's 2008 decision to remove the two companies' duopoly control of the state's poker machines.
Control of the state's pokies outside of Crown Casino were handed back to the venues, as occurs in NSW.
Tatts had originally successfully argued that its 1995 contract for an 18-year licence entitled it to a termination pay out.
Tabcorp however failed in its different original legal argument - that statute law, rather than a contract, obligated the government to compensate it.
Wendy Harris QC, for the government, argued that compensation should not be paid because the government was not obligated to award new licences to the companies beyond the 18 year ones.
A Victorian government spokesperson said the court decisions had no immediate financial implications for the state.
"The High Court's decision to grant special leave to appeal in both proceedings remains a mixed outcome for the state," the spokesperson said in a statement.
The appeals were granted by retiring Justice Kenneth Hayne in his final sitting day.
He will be replaced by his wife on the bench, Federal Court judge Michelle Gordon.
Tabcorp shares had risen four cents to $4.76 by 1420 AEST, while Tatts was three cents stronger at $4.05.
