Tabcorps in casino license talks

29 May 2007

AUSTRALIA – As reported by the Australian: "Embattled casino and gaming company Tabcorp has begun talks with the NSW Government over the exclusivity arrangements for its Star City casino licence in Sydney.

"Acting Tabcorp chief Elmer Funke Kupper is believed to have met with the new NSW Gaming Minister, Graham West, earlier this month.

"It is understood separate discussions are under way between the department, Tabcorp and Star City management over the exclusivity arrangements.

"Tabcorp has held a 99-year licence for Star City since 1994 but its 12-year exclusivity period expires in September.

"…Investment bank UBS told clients last month that the most likely outcome from Tabcorp's negotiations in NSW was an 'increase in the gaming tax rate, specifically electronic game machines and/or an upfront payment'…"

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