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The Tasmanian government may be liable for the failure of the state owned internet bookmaker Sports Alive failed after the Melbourne Supreme Court heard this week that the new owner the Tatts Group and Tote employees have indemnity.
The state owned Tote invested $5 million in Sports Alive, which then folded while owing millions.
An examination by a liquidator said that Tote was aware of the bookmaker's financial straits in addition to possible violations of betting regulations. The liquidator's lawyer David Galbally said that the State government could be liable for damages in the site's failure.
Commenting on the issue Premier Lara Giddings said: "Of course that would be of concern to us but we are a long way off even knowing if that is a problem."