By Clyde Mooney

Clubs Australia has once again slammed the proposed reforms to poker machine gambling, this time backed by strong independent research.

Multinational Deutsche Bank has released the results of a study that predicts gaming revenue will be reduced by 30 to 40 percent, translating to an annual loss of income of between $4.9 and $6.4 billion.

The report also predicts that the cost of implementing mandatory pre-commitment (MPC) on the country’s 200,000 poker machines, including linking them to a national database, would be up to $5 billion.

Clubs Australia believes this would amount to a financial wipe-out for clubs and pubs.

“Some of Australia’s leading gambling academics have indicated MPC will not achieve a reduction in the rate of problem gambling,” says Anthony Ball, executive director of Clubs Australia.

“The Productivity Commission recommended to the Federal Government that this technology should be trialled, and with good reason.

“Clubs and hotels employ more than 180,000 people directly. Tens of thousands more are employed through sectors such as food, cleaning, security and tourism that won’t have a job if local clubs and pubs no longer exist. “

The report by Deutsche Bank also expresses doubt over the future of the reforms.

“We remain of the view these recommendations will not likely be passed as we do not believe they will be supported by the independents.”

The Gillard government has until budget time 2012 to either implement the reforms or risk losing the support of the pivotal independent that initiated the debate, Andrew Wilkie.

The Deutsche Bank report can be viewed by clicking here.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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  1. Clubs Australia are obviously in panic mode that their cushy existence on the backs of problem gamblers will be threatened. How do they sleep at night? Sleeping on mattresses stuffed with money really can’t be that comfortable!

  2. If the conversion of poker machines will cost billions for adaptation to mandatory pre-commitment as per Wilkie’s reforms…then the clubs’ and Liberal Party suggestion to convert ALL of the machines for provision for voluntary pre-commitment will cost heaps MORE….won’t it?

    Pre-commitment would have to be trialled on a mandatory basis to prove its worth…as voluntary pre-commitment is reported to be less useful?

    Can you please supply the link for the Deutsche Bank study?

    Many inappropriate assumnptions have been made it seems…since the issues outlined here are not consequences of the Wilkie reforms as they are yet outlined… How can predicted loss be calculated as yet? The format has not been decided…

    This is a silly article with silly claims that are unproven eg…clubs need to show evidence that they will be wiped out!

    MPC is not primarily aimed at problem gamblers….that is one part of its use. The MAIN target group are the responsible gamblers who deserve to have a tool to set their own limit of gambling spending….and to get more information. MPC is a general consuemr issue…NOT a ‘problem gambler’ issue only.

    Clyde Mooney seems not to understand that aspect? Nor do clubs and pubs obviously. Such simplistic thinking is shoddy.

  3. What did clubs do before they became dependent on poker machines?

    The huge number of poker machines has only been allowed since the late 1990’s.

    It’s time to roll back the huge growth in poker machines in NSW.

    Clubs can go back to what their original purpose was – supporting local sporting groups. Not bleeding money from vulnerable people to enrich club/pub owners.

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