Greek-based gaming company Intralot is abandoning its Keno and scratchies business in Victoria and suing the Australian State Government for millions of dollars in losses. In 2007, the Labor government in Australia granted Intralot a 10-year license in the hope that the Greek company would boost gaming markets.
After much discussion, the business reached an agreement with the Government and rival Tatts Group to transfer its licenses. Under a 2008 agreement, Tatts Group had the rights to run the main lottery. Intralot provided scratchies. The deal ended Tattersall’s 50-year monopoly in the gaming market.
According to Victoria Premier Denis Napthine, this is a big victory for lottery store owners since they will be charged 1,600 dollars less to sell products.
Meanwhile, Intralot is suing the State Government for its 63 million dollar losses. “It shows quite clearly you simply can’t trust Labor,” said Napthine, who believes that the situation is the Labor Party’s fault. “You can’t trust them to manage gaming contracts, you can’t trust them to manage projects, you can’t trust them to manage money, you can’t trust them to manage Victoria.”
“Intralot is in litigation against the state in relation to the arrangements that the previous Labor government put in place for its licence,” said Gaming Minister Edward O’Donohue.
Intralot blames its losses on Tattersall’s arrangement with lottery agents to control the prime position in lottery shops for its products.