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Tote Tas Sale For 99-Year Licence & Zero Tax
Tote Tasmania has talked up its sale prospects after the state government tabled a package of reforms which the gaming group said would deliver "the most attractive wagering tax & licensing regime in Australia," reported The Australian Financial Review. Gambling giants Tatts Group & Tabcorp "are believed to be interested in Tote Tasmania" (which was formally put up for sale by the Tasmanian government in January). Analysts "believe the business could fetch about $100 million, although Tote Tasmania chief executive Craig Coleman said he expected those estimates to be increased" based on this week's amendments, which "provide for a 50-year licence with an option to renew for a further 49-years, zero tax & a flat wagering levy of $6 million a year". In addition, the Tasmanian government "will separately guarantee the funding of the state's racing industry, relieving Tote Tasmania from its direct funding obligations, which have averaged $32 million a year in recent years". In contrast, Coleman noted the "equivalent licence in Victoria lasted just 12 years & required $250 million in racing industry funding plus turnover tax".