License Auction, Woolworths and Mathieson buy $24m Licenses

License Auction, Woolworths and Mathieson buy $24m LicensesDuring a State Government auction, $24 million was paid for 4,692 decade-long poker machine licenses, by Woolworths Ltd and Bruce Mathieson. An average per license paid by both the firms accounted to be $38,000.

Now, as a consequence of this purchase, both the firms have in their hand, a control of over 34% of all pub poker machines in Victoria. There were other victorious firms gaining the licenses, like Melbourne-based AFL clubs who secured the control of dozens to hundreds of licenses, and Castelo Group owning 4.8% of the licenses.

For the States' 27,500 poker machines, the Victorian Government made $981 million from auction of licenses, earlier this month. $39,600 and $31,600 had been the average price paid for pub-based machines and for clubs, respectively.

After the auction, a decision was announced to scrap the duopoly of Tabcorp-Tattersall's. For the 27,500 machines located outside the casino for a decade from 2012, the licenses were offered subsequently. This money being raised in the auction is said to be put into health and bushfire initiatives by the Government.

Colloquially known as "Woolies", the fresh food people, Company Woolworths Ltd maneuvers the biggest supermarket chain in Australia. While, it posted a $1.8 billion net profit in June 2009, it is expected that Woolworths will grow much stronger in near future.