Gaming giants Tabcorb and Tattersall’s have seen their share prices savaged after the Victorian Government announced it would restructure the gaming machine industry.

Victorian Premier John Brumby has announced an end of the duopoly currently enjoyed by the two gaming companies with new licensing arrangements to come into effect after 2012.

This agreement will allow any venue to own and operate their own gaming machines under a 10-year licence and will be capped so that no one venue operator will own more than 35 per cent of machines at any one venue.

Mr Brumby says the initiative is designed to improve diversity and competition in the sector.