Pokies reprieve

By Melissa Grant
UPROAR from managers of small pokies clubs has seen the State Government implement measures to protect those venues in its landmark restructure of the gaming industry.
Small community venues, including the Pakenham Sports Club, were concerned they would be forced to shut their doors when a poker machine bidding system was introduced as part of Spring Street’s new gaming legislation.
Steve Moloney, Pakenham Sports Club committee of management president, said the closure of his club would see a $100,000 per year funding cut to sport clubs in the Cardinia Shire.
However, the State Government last week moved to provide greater certainty to existing clubs by allowing them to pre-purchase gaming machine entitlements ahead of the bidding process.
They will only be forced to an auction process for additional machines and the venue’s average annual revenue per machine will determine their price.
Gaming Minister Tony Robinson said the industry restructure – which will spell the end of a gaming operator duopoly between Tatts and Tabcorp – would give greater control to clubs and the opportunity to derive more revenue.
“A guaranteed preliminary offer of gaming machine entitlements provides assurance to every existing Victorian club with gaming machines by giving them greater certainty in the current economic climate,” he said.
Mr Moloney was pleased to hear of the protection for small clubs, but is waiting for more details.
“It’s a little bit grey there about how its going to work but there will certainly be some protection unlike before where its open slather,” he said.
Shadow Minister for Gaming Michael O’Brien said the safeguards delivered a lifeline for dozens of footy clubs, bowls clubs, golf clubs and RSL sub-branches.
“Under Labor’s original bill, every club would have been forced to compete in an auction process for gaming entitlements and many small clubs would have missed out and been forced to the wall,” he said.
The legislation, which was passed in the Upper House last Thursday night, requires that gaming machines are split 50/50 between clubs and hotels.
Mr Robinson said the State Government was also assisting clubs with special deferred payment terms, reducing the first two instalments from 10 per cent to five per cent.
The State Government will release more details about the bidding process this week.