Clubs seek compensation as Victoria introduces poker machine restrictions

July 18, 2023 8:43 am.by Staff Writer

The powerful clubs lobby in Victoria is seeking compensation for pubs, clubs, and RSLs following the Andrews government’s decision to impose restrictions on poker machines. This move caused a significant drop of over 10% in the shares of Australia’s largest pokies operator. The government’s new regulations include slower spin times, mandatory closure periods, and binding limits on daily poker machine losses. Brendan Chavasse, the manager of Lara Sporting Club, emphasized that small not-for-profit clubs play a vital role in supporting local jobs and contributing to the community.

Endeavour Group, the largest pub owner in Australia, whose shares experienced a decline, stated that it would collaborate with the government to establish timelines and models for the proposed reforms. Andrew Lloyd, the CEO of Community Clubs Victoria (CCV), which represents pubs, clubs, and RSLs (excluding Crown casino), expressed concerns that clubs had entered into long-term licensing agreements with the government based on different conditions and circumstances. He argued that smaller clubs, especially in regional areas, would face adverse effects due to the overhaul and called for a way out or a compensation package if their businesses were detrimentally affected.

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The crackdown on the 27,372 poker machines in pubs, clubs, and hotels in the state of Victoria aims to implement the toughest gambling and anti-money laundering measures in Australia, according to Premier Daniel Andrews. These measures follow the decision to enforce mandatory pre-commitment rules for the 2,628 machines at Crown. Despite previous assurances that pubs, clubs, and RSLs would not face similar regulations, the recent changes have left Lloyd disappointed, as he was informed only on the morning of the announcement. He expected the government to observe and learn from the changes happening at Crown before implementing further reforms.

In Victoria, clubs with poker machines can receive a reduction in gambling tax if they provide an annual community benefit statement showing that at least 8.3% of pokies revenue has been utilized for community purposes. Brendan Chavasse, the general manager of Lara Sporting Club, expressed surprise at the announcement and highlighted the significant contributions made by small not-for-profit clubs to job creation and community support.

Stephen Mayne, an anti-pokies campaigner and City of Manningham councillor, acknowledged the argument for reimbursement of license fees or exit opportunities for operators. However, he emphasized that these reforms were long overdue to address the high losses in a country heavily influenced by gambling. Research from Monash University revealed that a significant portion of gambling tax deductions for licensed clubs were allocated to operational expenses, while charitable contributions constituted a smaller percentage.

The government spokesperson stated that they would work closely with venues in the coming months and collaborate with the Commonwealth on broader gambling reforms. The reforms include a mandatory pre-commitment system for all poker machines, requiring players to use a card to sign in and set loss limits. The maximum amount of money that can be inserted into a machine in one go will be reduced to $100 from $1,000. The timeline for implementing these reforms has yet to be unveiled, and the government intends to engage in thorough consultation with the industry.

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