Tatts Group Ltd., the Australian gaming and wagering company, said Monday that it will write off the carrying value of its gaming machines licences and brands this fiscal year, following the Victorian government's decision to alter licensing arrangements in the state.
The government announced in April that from 2012 pubs and clubs in the state would be permitted to own and operate their own gaming machines under 10-year licences, thereby putting an end to the duopoly held by Tatts and Tabcorp Holdings Ltd. over the state's 27,500 poker machines.
Tatts told Australian daily The Age that the changes were not expected to adversely affect its consolidated profit or dividend payout policy over the period left on its licences.
Tatts added that its board will declare a special dividend in the first quarter of fiscal year 2009.
"This special dividend will effectively, both in terms of quantum and timing of payment, substitute for the final dividend that will not be determined by the parent company in the 2008 financial year, given it will incur a loss due to the write-offs," it said.
Both gaming companies asked for a $600 million compensation as a result of the changes, but the Victorian government denied their requests.