Tabcorp denies bribe accusation

Australia - GAMING giant Tabcorp has denied it paid a rival $20 million not to bid for a licence to break its poker-machine duopoly in Victoria, arguing that payments to Clubs Victoria were part of a sponsorship deal.

The company argues that the sponsorship deal was not conditional on Clubs Victoria agreeing to sit on the sidelines and refrain from bidding to operate poker machines from 2012 and thereby break the duopoly held by Tabcorp and Tatts Group.

It was responding to an article in The Age on Thursday, which said Tabcorp had been accused of offering a lump sum of $5 million and annual payments of $1.5 million over the next decade if the Government maintained the status quo and renewed Tabcorp's poker machine licence beyond 2012.

The accusation was made in a statement of claim lodged by Clubs Victoria as part of a dispute with its former president, Leon Wiegard, and does not involve Tabcorp as a party to the dispute.

The offer was allegedly made by Tabcorp's managing director, Elmer Funke Kupper, on March 7, the same day Clubs Victoria signalled it planned to operate poker machines in competition with Tabcorp and Tatts Group.

Clubs Victoria, which represents 400 non-profit gaming venues, said Mr Wiegard received an updated offer from Mr Funke Kupper a week later, with conditions that "[Clubs Victoria] refrain from participating in any bidding process for gaming licences; and issue a press release by 4pm that day [March 12] stating that the plaintiff [Clubs Victoria] supported the current gaming licence structure and that there should be no changes".

The secret deal was scuppered at 3.57pm that day after Clubs Victoria's chief executive, Margaret Kearney, did not respond to the revised terms and the deal was pulled by Mr Funke Kupper, the documents said.

Clubs Victoria's lawyers claim to have copies of all email correspondence with Tabcorp executives.

Tabcorp said in a statement yesterday that it "rejects suggestions … that the company has been involved in anti-competitive conduct in its dealings with Clubs Victoria".

Mr Funke Kupper said he rejected suggestions the company had contravened the Trade Practices Act or acted improperly.

"Tabcorp is disappointed that its commercial sponsorship negotiations, which were conducted in a legitimate and normal commercial manner, have been misrepresented," he said.

The revelations are part of a rift between Clubs Victoria and Mr Wiegard, who resigned in June and founded a new representative body for suburban poker machine clubs funded by Tabcorp.

Mr Wiegard said he would defend the claims vigorously.

The chairman of the Australian Competition and Consumer Commission, Graeme Samuel, declined to comment on the legality of the $20 million inducement, saying it was before the courts.
Sydney Morning Herald

News Added: 09 October, 2008

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