Deal “looks uncompetitive”
The Tasmanian government is being pressured to reexamine a long-term deal that gives the Federal Group the sole license to operate poker in the Australian state.
According to ABC News, the deal was first made in 1993, and was extended 10 years later by the former Labor government. The original deal was “done in secret” by former Labor treasurer David Crean, the publication reported, and gave Federal an extra 15 years of monopoly with the potential for an additional five. Under those terms, the exclusivity would last until 2023.
Professor Allan Fels, onetime head of the Australian Competition and Consumer Commission from 1995 to 2003, told ABC it is “ridiculous” to grant a monopoly of that duration.
“It certainly looks uncompetitive, it should be put out to open tender, one would have thought,” he said. “If the government is putting a monopoly out for sale or lease, then it’s important they get the best possible deal for the public, and they will get that if there’s competition.”
The Federal Group was recently slammed for hinting it would not proceed with $100 million in property improvements if the monopoly is threatened. “The dilemma we have really is we don’t have the certainty around our licenses to be able to undertake those investments)” said Daniel Hanna, Federal Group spokesman.
According to the Tasmanian Mercury, Denison lawmaker Andrew Wilkie says is “blackmail …. The pokies industry buys political favors and preys on the most vulnerable.”
The Federal Group had floated plans to upgrade its Wrest Point and Country Club casinos and a new boutique hotel at Port Arthur.
