The new Victorian government will have to pay wagering and lotteries giant Tatts Group $540 million in compensation, but it has escaped paying a similar bill to Tatts' rival Tabcorp.

The Victorian Court of Appeal unanimously dismissed an appeal by the state government over the payment on Thursday.

Tatts Group has scored a $540m win in its battle over poker machine licensing in Victoria. Credit:Louie Douvis

The Court also dismissed an appeal by Tabcorp against an earlier rejection of its claims against the state.

The two gaming giants have been fighting the state government after it took away their pokies duopoly. The move came into effect in August 2012.