Clubs lobby to seek compensation for Victoria’s pokies reform
Victoria’s proposed restrictions on gaming venues, has led the powerful clubs lobby to seek compensation.
This week the Andrews government unveiled a plan for tougher restrictions on poker machines that includes slower spin times, mandatory closure periods and binding limits on daily poker machine losses.
The announcement caused Australia’s largest pokies operator’s shares to drop by 10% on Monday.
While Endeavour Group said it work with the government to determine timelines and models for the proposed reforms, Andrew Lloyd, the chief executive of Community Clubs Victoria (CCV), said regional areas would be hardest hit.
CCV represents pubs, clubs and RSLs.
Lloyd said clubs were in long-term licensing deals with the government to run pokies.
“There are now material changes to the conditions and the environment from when people signed up,” Lloyd said.
“If their businesses are detrimentally affected, there has to be a way out or a compensation package.”
The crackdown will affect Victoria’s 27,372 machines in pubs, clubs and hotels.
Crown Casino is exempt from the changes. However, after its reputation was tarnished must follow mandatory pre-commitment rules for its 2628 machines.
Premier Daniel Andrews claims the move will give Victoria the toughest gambling and anti-money laundering measures in Australia.
Lloyd expressed his disappointment at the Andrews government for the lack of warning.
“We have had the approach we want to work with the government. With the recent changes happening at Crown, we thought the government would have watched and analysed how it was working and taken learnings from that,” he said.
Lloyd called on the government to help fund the cost of the transition.
Lara Sporting Club general manager Brendon Chavasse said small, not-for-profit clubs, which support thousands of jobs and “pump hundreds and thousands of dollars into the community” would be adversely affected.
“Without gaming machines our clubs would cease to exist,” Chavasse said.
“If community clubs aren’t properly consulted about the mandatory pre-commitment system for poker machines, they will fold.”
The government insists the move is designed to help problem gamblers.
Cabinet minister Ingrid Stitt said, “I hope that the sector will be on board with those efforts to improve the lives of the poor people who have found themselves in this terrible situation.”
The state government will work closely with venues over the coming months to ensure a smooth transition and will work with the Commonwealth on broader gambling reforms, including sports bet advertising.
According to Victorian Gambling and Casino Control Commission data, punters lose more than $6 million a day on poker machines in pubs and clubs.
Changes will see players use a card to sign in and set loss limits, while the maximum amount of money a player can feed into a machine in one go will drop to $100, down from $1000.
A timeline is yet to be established for some reforms.
Jonathan Jackson, 18th July 2023
