Lobbying from clubs, pubs and RSLs has prompted the state government to review the current electronic gaming machine entitlement term of 10 years.
Treasurer Michael O’Brien and Liquor and Gaming Regulation Minister Edward O’Donohue released an issues paper on June 12 that cnvasses the possibility and ramifications of offering longer entitlements. It also asks for industry and community feedback.
Release of the paper, Review of the Gaming Machine Entitlement Term, follows a request from the Australian Hotels Association, Clubs Victoria, the Returned and Services League of Australia Victorian branch and the Community Clubs Association of Victoria (CCAV) in August last year that the premier consider extending the term due to commercial challenges faced by hotels and club operators
According to the issues paper, the clubs and pubs industry had complained the 10-year entitlement term created uncertainty. They said some venue operators were struggling to obtain bank loans, while others were finding it hard to develop long-term business models.
A spokeswoman for CCAV told Star Weekly Victoria’s not-for-profit clubs had a need for security of longer-term tenure so they would be able to continue to plan for improvements to community facilities.
Mr O’Brien said any consideration of entitlement terms had to be consistent with existing regulatory arrangements, including Victoria’s cap of 27,500 electronic gaming machines in pubs and clubs and other responsible gambling policies.
Whittlesea Community Connections manager Jemal Ahmet has labelled the submissions process one-sided and said the issues paper reflected poorly on the business nous of Victoria’s pubs and clubs.
He said Whittlesea had three of the most profitable venues in Whittlesea.
“If they can’t manage their finances to be viable enough for a bank loan, they should not be operating a government licence,” he said.
Mr Ahmet said the gambling industry’s intentions were plain.
“They want to protect the current rules as long as possible and lock out any potential for reform,” he said.
Whittlesea mayor Mary Lalios has urged the state government to reject the proposed 20- to 25-year licences.
“Ten years is adequate time to provide certainty to industry and is more conducive to promoting the delivery of responsible gambling service by venues,” Cr Lalios said. “It also enables the reallocation of licences of venues that continuously encourage unsafe gambling practices.”
A spokesman said Hume council was in the process of formulating a response and would be making a submission.
Public submissions are now open and close on June 30.
