State of Victoria v Tabcorp Holdings Ltd

The matter before the Court was an appeal by Tabcorp Holdings Ltd against a decision of the Supreme Court of Victoria. Tabcorp sought to enforce a terminal payment under section 4.3.12 of the Gambling Regulation Act 2003 (Vic) following the expiration of its gaming and wagering licences. The central issue was whether the allotment of gaming machine entitlements constituted a 'grant of new licences' within the meaning of section 4.3.12, and if the letter from the Treasurer to Tabcorp and the racing industry, which included a statement about dealing reasonably and in good faith, was a binding contractual obligation.

The Court found that the statutory interpretation of 'grant of new licences' under section 4.3.12 of the Gambling Regulation Act 2003 (Vic) was a connected and combined statement of the will of Parliament. The Court applied the principles from the case of Plaintiff S297/2013 v Minister for Immigration and Border Protection, which emphasised the statutory purpose to preclude circumstances that could entitle Tabcorp to a terminal payment while preserving the existence of the statutory entitlement. The Court held that the allotment of gaming machine entitlements did not amount to a 'grant of new licences' and, therefore, Tabcorp was not entitled to a terminal payment. Additionally, the Court found that the statement in the letter from the Treasurer, while contractually binding, did not obligate the government to include statutory provisions preserving Tabcorp’s entitlement under section 4.3.12.

The Court dismissed the appeal, affirming the lower court’s decision. It ruled that the allotment of gaming machine entitlements did not constitute a 'grant of new licences' and, consequently, Tabcorp was not entitled to a terminal payment. Furthermore, the Court held that the failure to include statutory provisions preserving Tabcorp’s entitlement under section 4.3.12 did not constitute a breach of the contractual obligation as it was explicitly subject to contrary executive and legislative action.