Greek gaming company Intralot has announced its plans to launch a multi-million dollar law suit against the Victorian government – with the Herald Sun reporting it could amount to $63 million – on the back of a 10 year licensing deal it signed in 2007.

Intralot’s contract with the government gave it a licence to run scratchies and Keno in the state.

Former Labor gaming Minister John Pandazopoulos, who oversaw the initial stages of the deal whilst in cabinet, told Neos Kosmos the decision to quit Victoria was due in part to the duopolised control by TAB Corp and the Tatts Group over the gaming industry.

“I was gaming minister as part of national competition policy. Nationally there was a move to break monopolies and duopolies and create competition so the gambling sector had to be part of that.”

“There’s no doubt they (Intralot), since entering the market, were fighting established names in the market like Tattersalls. They entered the market with a bloody nose and all the way through they’ve struggled, they haven’t necessarily been as aggressive as other gambling operators do to protect their interests, maybe because they entered the market with the Greek economic crisis, I’m sure it hasn’t helped them getting out there.”

Pandazopoulos said the company had its “hands tied” because of a deal that gave Tatts Group power to implement “anti-competitive measures”, which meant Intralot had to sell its products on different counters in stores, leading to increasing costs – something not seen in other business sectors.

“My view is that it is not the fault of government, my view is that it is the fault of the ACCC, which never ended up taking on the industries anti-competitive measures, they’re flexing a bit of muscle in the supermarket area but they didn’t do it in the gambling products area, and that’s been an unfair marketplace.
“You go to any shop you can buy multiple products from the same counter, why can’t you buy multiple gambling products from the same counter? For me that’s anti-competitive.”

Pandazopoulos said biases against the company because of its Greek roots may have driven people away.

“It’s unfortunate from a Greek business point of view, but the reality is, like any other company, if they don’t see any growth in the area and their costs are too high, why stay in the game?”

Intralot will still maintain a presence in Australia, with business agreements in Western Australia and other jurisdictions on foot.