QLD Racing deal

A quote from the weekend Fin Rev.

CLSA analyst Sacha Krien said he was bullish on the effect on Tatts of the news (Vic Supreme Court finding in favour of Tatts Group re;compensation for the loss of its gaming licence) but pointed to the Qld wagering licence as a bigger win.
"I think the resolution of the wagering licence is better news for Tatts. It's not subject to appeal and it's a significantly better outcome than we were expecting," he said.
"We estimate Tatts is approximately $14 million better off on an ongoing basis under the new licence. They're paying more to racing but the government are giving them a break on their taxes."

The Victorian govt are set to appeal the Vic Supreme Court finding on compensation. From my layman's point of view I believe that subsequent Vic state govt's will continue to appeal this finding for as long as they can. Even if they feel that it will be ultimately futile. I believe it was a political decision originally that has now been found to require compensation. However the state govt's will attempt to drag this out as long as possible as they will not want to be the one's who have to pay the piper. Who can blame them? But for shareholders the courts have found in our favour and we've cleared the first hurdle (intentional controversial racing pun) and one day we'll "probably" get to collect.

Meanwhile I agree with Sacha Krien - change to tax rates spelt out in Qld wagering licence agreement are great news for Tatts.