Pokies: Toss up for clubs

By Glen Atwell
SHOCKED managers of local poker machine venues are still assessing whether last week’s axing of the multi-billion dollar duopoly between Tatts and Tabcorp will be good or bad for business.
Venue operators were stunned when Premier John Brumby announced that individual pubs and clubs would be free to bid for the right to own and operate pokies in 2012.
The industry shake up will mean pokie venues will participate in an auction-style process to secure the right to own up to 110 machines per venue.
Brian Asley, general manager of Trios Tabaret in Cranbourne, said he was surprised at the announcement.
“If the government is breaking up the duopoly then it must return more money to the venues,” he said.
Under the current arrangement, pokie machine revenue is split evenly between the State Government, the gaming operator and the venue.
Mr Asley said cutting out the gaming operator would mean much more work for local venues wanting to own and operate their machines.
“Trios have 75 machines worth $50,000 each,” he said.
“If we come to own those machines, that’s $3.75 million, there will have to be a big return on investment to entice clubs into such a deal.
“We’ll also have to source new games, promote the venue and appoint a layer of middle management,” Mr Asley said.
Down the highway at Tooradin Sports Club, assistant manager Mark Griffiths described the end of the duopoly as the biggest change to the gaming industry since Victoria introduced pokie machines in 1992.
“Our first reaction was shock,” he said.
“We always thought the duopoly would continue, with perhaps a third or even fourth player. To essentially remove the operators and put the onus of operation on the venue is a massive change.”
Mr Griffiths said the extraordinary pokie machine auction would either make or break the smaller sized venues.
“We’re nowhere near as big as Trios and Amstel (Cranbourne),” he said.
“The auction will be interesting, I just hope the smaller, and community run clubs are given a chance.”
The Tooradin Sports Club is run by a community-based committee of management, and returns all profits to local organisations.
If the shake up of the gaming industry equates to more money back to the community, Mr Griffiths said his venue would most likely support it.
The Tooradin Sport Club supports the Tooradin Fire Brigade, a number of local primary schools and its direct sporting club affiliates.