Woolworths Ltd
(ASX:WOW) is confident of generating greater revenue growth from its poker machine joint venture in Victoria despite new regulations forcing it to offload about 1000 machines.
The Australian Financial Review reports that the supermarket giant says it stands to benefit from the Victorian Government’s decision to auction gaming machine licences online on April 20, with final bids due on May 10.
Revenue from gaming machines, now shared between venue owners, machine operators and the government, will be split between the owner and the government after 2012.
Woolworths runs 280 hotels and about 1100 poker machines under its Australian Leisure & Hospitality venture, of which it owns 75%.
It has about 5800 gaming machines in Victoria and under the new regime, it will have to cut that down to 4813.
But a spokesperson for Woolworths says the company expects the new structure of splitting revenue between the government and operators will boost the company’s pokie revenue.
The company says it plans to bid for the maximum poker machine entitlements it will be allowed.
Woolworths booked a profit of almost $1.836 billion for the 2009 financial year.
