This month, the ACT government is in the process of passing a law that will increase poker machine taxes for local clubs. As expected, gaming club operators are not pleased with the development, and they are fighting to keep tax rates as they currently are. The Southern Cross Club, one of the area’s most successful gaming venues, has been the most vocal about this issue.

Owners of the venue will address their patrons and fellow club owners this week, explaining to them just how harmful the tax increase will be. “The club movement, through ClubsACT, must deal with yet another proposal from the ACT to further tax clubs,” says John Lewis, Chief Executive of Southern Cross.

''If that taxation burden on clubs isn't lessened, there is no doubt that more clubs will become financially unviable, and close, resulting in a loss of valuable community services and facilities.'' According to Mr Lewis, the club has lost over $200 000 in the last financial year. The state’s poker machine tax rates are already quite high, and gaming club operators are having trouble keeping up with their payments.

There is talk of the state government possibly charging $1000 per year on each poker machine in Canberra. Bigger clubs with plenty of patrons consider the tax to be extortionate, so there is the chance that smaller clubs will be forced to shut down. Jeff House, Clubs ACT Chief Executive, has stated that Canberra’s government promised tax relief to the pokie industry.

Local politicians have yet to make good on that promise, and clubs are suffering as a result. To keep up with increasing tax rates, clubs have been advised to develop non-gambling revenue streams – but they are struggling to do so. There are few options available to club owners, and now does not seem to be an ideal time to increase tax rates.

About the Author

George Anderson
Author George, has over 25+ years’ experience in the Pokies and Casinos industry throughout Australia and New Zealand. Loves to research new Pokies games on the block and follows announcements from top industry providers about their upcoming releases. As soon as a new interesting pokie game appears on his radar, George is there to check it out and give you the scoop before anyone else and tell you about all casino sites where can play the latest game. Before this gig, George worked as Pokie game tester, making him an ideal candidate for this genre of work. He is also an animal lover and a proud owner of three dogs.