Tabcorp splashes out on ACT gaming provider; Mining tax raises just $600,000 during June quarter: Midday Roundup

Wagering giant Tabcorp will acquire ACT government-owned gaming provider ACTTAB for $105.5 million, reports Business Spectator.

Tabcorp expects the acquisition, which is still subject to regulatory approval, will generate earnings before interest, tax, depreciation and amortisation of approximately $14 million the year after it is completed.

ACTTAB provides totalisator and fixed-odds betting, as well as Keno and Trackside products. As part of the deal, the ACT government will issue Tabcorp a 50-year exclusive totalisator license, an initial bookmaking licence for 15 years, and the ability to provide Keno and Trackside products for 50 years.

Mining tax raises just $600,000 during the June quarter

Federal Treasurer Joe Hockey has repeated calls to repeal the Minerals Resource Rent Tax (MRRT), after revealing the federal government raised just $600,000 from the tax during the June quarter.

The latest figure comes after the Senate opposed the legislation to repeal the MRRT earlier this month, on the grounds the legislation would also repeal some programs funded by the tax, such as the schoolkids bonus.

The Treasurer used the news as an opportunity to take another dig at the previous government.

“It continues to defy logic that Labor, under the leadership of Bill Shorten, would continue to support a tax which has raised next to no revenue but is linked to spending of $17 billion over the next four years alone,” said Hockey.

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CMC Markets chief market analyst Ric Spooner says a weaker US close and news of further sanctions against Russia is likely to limit early buying support for stocks this morning.

The S&P/ASX200 benchmark was up 40.3 points, or 0.7%, to 5628.7 points at 12:15 pm AEST. On Tuesday, the Dow Jones, closed down 0.42%, falling 70.48 points to 16912.1 points.