Tatts Group Ltd’s wholly owned subsidiary Maxgaming Vic has failed to secure the licence for monitoring Victoria’s 27,000 gaming machines after August 2012.

That means Tatts’ association with gaming in Victoria will end once the new monitoring system has been introduced, the Melbourne-based company said in a statement on Wednesday.

Tatts said the Victorian monitoring requirements were extremely complex and the execution risks were considerable.

The company said it would not submit or enter into arrangements where the risk of delivery couldn’t be recognised in the returns available.