Federal Group says the government may be liable to financially compensate the company should new gaming arrangements come into effect in 2023.
In a submission on Future Gaming Market Amendment Bill, Federal Group's Daniel Hanna said official notice had not been provided to the company on the expiry of its 2003 deed.
"The licence has now entered the rolling term and this means that - without engaging in a sovereign risk event - the earliest date that the new gaming arrangements can commence is 1 July 2026," he said.
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Dr Hanna said on legal advice, public discourse and correspondence to the Federal Group on the proposed end to an exclusivity arrangement on poker machines did not constitute an official notice to end the deed.
The government's legislation stipulates new gaming arrangements will take effect on July 2023.
Dr Hanna said it would be highly inappropriate for Parliament to legislate away the rights of a party to an agreement with the Crown and represented a sovereign risk event.
"It is not uncommon for governments to negotiate their way out of contractual obligations, the same way that private parties do," he said.
"This involves a negotiated outcome that is acceptable to both parties; and may include compensation."
Government minister Guy Barnett on Monday said he had been advised that the official notice was provided to Federal Group in 2018.
The state's former liquor and gaming commission chairman has said the government's proposed new gaming laws borders on negligence regarding harm minimisation.
Peter Hoult in a submission said the inspectorial function of the commission was not properly resource and relegated it to an auditor role.
Mr Hoult said smaller gaming operators would struggle to meet the regulatory and financial requirements with individual licences for electronic gaming machines and Federal Group would likely prosper through concentrating their power in the market.
"We will likely see business failures in small regional operators and an aggregation of the market that will see pokies being moved around the state to the places that earn the most for venues," he said.
"History has shown us that this will lead to more pokies in lower socio-economic areas."
Mr Hoult said Federal Group would also likely benefit from its business Network Gaming being named the licenses monitoring operator of EGMs.
He said the proposed tax rates favoured parts of the gaming industry over others and that all EGMs should be taxed at the same rate with the same Community Service Levy applied.
Mr Hoult said there was no reform in the legislation for consumers and more needed to be done for harm minimisation such as slower spinning rates, forced breaks, and reduced operating hours for gaming venues.
"That there is no deliberate harm minimisation embedded in the legislation is a lost opportunity and borders on negligence."
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