VICTORIAN racing received good news today when the Supreme Court opened the way for a massive $6 million saving from the state government's poker machine levy.

ROD NICHOLSON reports for the HERALD SUN that racing had feared the savage cut to its projected $13 million season's profit when the government demanded a full year's levy for its poker machine operations for 2012/13, rather than the pro-rata levy for the 46 days it operated until August 15 last year.

The Supreme Court determined that the Victorian Government, contrary to its own determination, has a discretion under the Gambling Regulation Act 2003 (Vic) to calculate the levy on a pro-rata basis.

Racing Victoria was a 25 per cent shareholder in the TabCorp poker machine setup and therefore would have been liable for its share of the extra $13.6 million in levies (above the pro-rata figure) being demanded by the government.

Racing Victoria's chief executive Bernard Saundry said racing had budgeted for a levy, but clearly on a pro-rata basis and not the full year.

"The surprise is the extra $8.5 million we have just been informed about. Racing's share of that is about 70 per cent (trots and dogs make up the rest)," he said before the successful legal action.

"It would have hurt our budget badly," Saundry said.

The levy, legislated under the Gambling Regulation Act, charges operators $4333 per machine annually.

TabCorp (and its partner Racing Victoria) ceased operating on poker machines on August 15 last year after the state government changed the licence structure to put management in the hands of venue operators.

STORY SOURCE: MELBOURNE HERALD SUN - NEWS LIMITED.