Lobbying by 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 considers the possibility and ramifications of offering longer entitlements and asks for industry and community feedback.
The 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 because of commercial challenges faced by hotels and club operators.
According to the issues paper, the clubs and pubs industry has complained that the 10-year entitlement term has created uncertainty. The industry says some venue operators are struggling to obtain bank loans while others are finding it hard to develop long-term business models beyond 2022, when the existing agreements expire.
A CCAV spokeswoman said Victoria’s not-for-profit clubs had need of the security of longer-term tenure so they could continue to plan for improvements to community facilities.
Mr O’Brien said any consideration of entitlement terms must be consistent with existing regulatory arrangements, including Victoria’s cap on EGMs – 27,500 in pubs
and clubs – and other responsible-gambling policies.
In April, more than $7 million was lost on poker machines in Wyndham.
Wyndham council chief executive Kerry Thompson said the council was yet to decide whether it would make a submission on the review.
“Wyndham City is currently reviewing the gaming machine entitlement term issue paper to consider the potential health and wellbeing impacts on the community if the government extended EGM entitlements to 25 years,” she said.
Submissions close on June 30.
