The Victorian government is currently in the process of reviewing the pokie industry’s request to expand gaming machine entitlements. Should local politicians decide to bow to the demands, pokie clubs will be able to extend their entitlements until at least 2035. The reason that gaming clubs have requested an extension is that their current 10-year entitlements limit their business.
Club owners cannot realistically plan for more than ten years into the future, and it complicates their financial situations. This is because banks and investors may be reluctant to provide backing to venues that do not have particularly long-term plans. Victorian Treasurer Michael O’Brien has announced that the local government will review the request.
Clubs and pubs across the state will have two weeks to make submissions; however, the government will not consider any requests to increase the number of pokies in Victoria.
"The Victorian Government, as the issuer of the gaming machine entitlements, has a responsibility to support responsible gambling while also ensuring that the hotels and clubs that hold these entitlements operate in a suitable regulatory framework," says a statement from Mr O’Brien.
While the majority of professionals want to request an extension from 10-year entitlements to 25-year entitlements, some gaming industry professionals are pushing for indefinite entitlements. Richard Willingham, State Political Correspondent, has released a statement arguing that licenses should be operated in perpetuity rather than having a limit.
He states that other states have had success with this system, and that Victoria could see similar results. “The public would be getting more money out of it. They wouldn’t have to go through the problems they do now where every 10 years they have to go through the process of distributing the machines. It’s just silly,” he writes. Submissions are due at the end of July, after which the government will make a decision.
We will keep you posted on the results.
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