This really is a big deal

TWO of Tasmania’s most powerful forces, the Federal Group and the Tasmanian Hospitality Association, will today unveil the basis of a landmark deal which, if accepted by the Government, will reshape the face of gaming in this state.

The proposal, to be presented as a joint strategy at a public hearing in the parliamentary inquiry into the future of gaming, will seek to end Federal’s fourdecade monopoly.

Under the plan, pubs and clubs would own and operate their own machines from 2023.

This represents a massive shift on the status quo. At present, venues lease poker machines from the Federal Group, with the group reaping a significant proportion of the revenue.

As State Political Editor Blair Richards writes today, under the new model, pubs and clubs and the State Government would receive a significant increase in revenue. Federal owns 12 venues, but would be out of the equation for the venues it does not own.

The model will likely do nothing to appease a coalition of groups campaigning for the removal of machines from pubs and clubs.

There is little doubt there are strong community feelings about the impact of poker machines, particularly in our working-class northern suburbs.

It was essentially an anti-pokies campaign which swept independent MP Andrew Wilkie into power on the back of a massive public backlash.

But it appears highly unlikely that any government of the day, regardless of colour, would legislate for their removal from the community.

The Government is swearing black and blue it has not done a deal with Federal and the THA and will only form its position at the conclusion of the inquiry.

The most likely scenario from here is a responsible harm-minimisation approach, which would include a community interest test among other measures.

The State Government is swearing black and blue it has not done a done with Federal and the THA and will only form its position at the conclusion of the inquiry.

It will therefore need to examine the devil in the detail and analyse what it means for Tasmania.

What does it mean for pub and club owners? On the surface they appear the big winners. THA boss Steve Old has said it will enable venues to “employ more people, invest in new products and undertake major redevelopments”.

What does it mean for the community? The opposition in our struggling suburbs will not go away and the public must be assured there are no sweetheart or backroom deals, and that there is an acute awareness that some communities are genuinely struggling and need support.

And what will Federal want in return? It no doubt has its eyes on more developments around the state and Mr Farrell told the gaming inquiry in February he would expect the State Government to reconsider taxes and licensing fees on Tasmania’s gaming market if his company lost its monopoly.

Interesting, too, will be Labor’s position on the future of gaming, which it has said will not be decided until the inquiry has been completed.

That hasn’t stopped some high-profile members speaking out against pokies.

This has been a high-stakes debate. And this deal has just taken it to a whole new level.