In most cases, poker machines are used way to generate additional business for pubs across the country. However, some venues have experienced the opposite effect. Several clubs across the country are being forced to close their doors because they are unable to pay for their poker machine licenses. This year, over 100 pokie licenses have been surrendered.
Club owners have been unable to keep up with the costs of maintaining the pokies and paying for their licenses. In some cases, clubs have been forced to shut down. This is a growing problem, and there is the possibility that more clubs will close down by the end of the year. Two recent club closures are the result of the inability to keep up with licensing costs.
They were losing $10 000 each month, and the pokies were not bringing in enough revenue to offset these costs. The Wodonga Golf Club has racked up $500,000 in debt for its 40 pokie licenses. The club must offload its pokies or face closure. It is unfortunate because the clubs cannot sell their licenses; they must simply surrender them. There is a ‘use it or lose it’ policy in place.
The local government has stated that many clubs have experienced a positive result due to their poker machine profits, and they have no problem paying their licensing fees. Treasurer Michael O’Brien states that the government needs the money from licenses to pay for healthcare and education – but the closures of clubs and loss of licenses compromises this funding.
It is quite a difficult situation for both club owners and the local government. However, there is no word yet on whether or not the licensing system will be revised to help maintain government funding and allow local clubs to sell their licenses to other venues.
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