Vic treasurer relieved after HC pokies win

Victorian Treasurer Tim Pallas is relieved and happy the state budget will receive a $540 million windfall as a result of the High Court's decision to deny Tatts Group and Tabcorp compensation over their loss of poker machine licences.

Mr Pallas on Wednesday admitted he was a "very relieved and very happy treasurer" following the ruling.

"It means the $540 million previously allocated to Tattersalls will of course be returned to the state and that means our budget position is strong (and) getting stronger as a consequence," he told reporters.

Tatts and Tabcorp had a duopoly to operate up to 27,500 poker machines in Victoria - outside of Melbourne's Crown casino - until August 2012.

But the Brumby government decided in 2008 to hand control over the poker machines they operated to pubs and clubs once permits held by Tatts and Tabcorp expired.

The state government has been locked in a legal battle with the pair since 2012 over compensation for the changes.

Mr Pallas said Wednesday's decision "vindicated" the previous Labor government's handling of gambling licences.

The treasurer is not yet sure how much interest the state will receive on the $540 million it's owed, or what court costs it will be paid, but he anticipates the funds will be used on infrastructure projects.

"I've been very clear in my view about the need for the state to increase, in a very substantial sense, its investment in infrastructure. It's our obligation to the future," he said.

Mr Pallas said the court ruling wouldn't affect investment in Victoria.

The commercial sector understood there was "a robust process by which courts can manage contractual arrangements and that's exactly what has happened here".

But shadow treasurer Michael O'Brien said the High Court ruling ended "one of the greatest financial disasters in Victoria's history".

"Daniel Andrews and Labor cost this state $3 billion by botching the auction of lucrative 10-year gaming licences," he said.

"The auditor-general found that Labor delivered a huge windfall to large pokies operators at the expense of the community."