Tatts Group Limited v The Treasurer of Victoria; Tabcorp Holding Limited v The Treasurer of Victoria

The High Court of Australia heard appeals from the Supreme Court of Victoria in *Tatts Group Limited v The Treasurer of Victoria* and *Tabcorp Holdings Limited v The Treasurer of Victoria*. The central dispute concerned the validity of certain provisions of the *Gambling Regulation Act 2003* (Vic) (the Act) as they applied to the appellants, Tatts Group Limited and Tabcorp Holdings Limited, who held exclusive licences for the operation of gaming machines and totalisator betting, respectively. The appellants argued that these provisions, which imposed a levy on their revenue, were invalid under section 117 of the Constitution.

The primary legal issue before the High Court was whether the impugned provisions of the *Gambling Regulation Act 2003* (Vic) constituted discriminatory taxation or imposts on the appellants by reason of their interstate trade or commerce, thereby contravening section 117 of the Constitution. Section 117 prohibits states from imposing discriminatory taxes or duties on persons who are residents of other states. The appellants contended that the levy, by its nature and operation, discriminated against them as entities engaged in interstate commerce.

The High Court, comprising Hayne and Nettle JJ, dismissed the appeals. Their Honours held that section 117 of the Constitution does not extend to protecting companies from state legislation that imposes a tax or levy on their business operations, even if those operations involve interstate commerce. The Court reasoned that section 117 is concerned with discrimination against individuals based on their residence in another state, not with the taxation of corporate activities. The levy was found to be a tax on the business of operating gaming machines and totalisator betting within Victoria, and not a tax imposed by reason of the appellants' interstate connections or residence.

Consequently, the appeals were dismissed, and the provisions of the *Gambling Regulation Act 2003* (Vic) were upheld as valid.