PUBS DO A POKIES DEAL

FEDERAL READY TO GIVE UP MONOPOLY

THE Federal Group and the hospitality lobby have struck an agreement that involves Federal giving up its decades-old monopoly on poker machines.

Pubs and clubs would own and operate their own machines from 2023 under the proposal to be presented today to a parliamentary inquiry on gaming.

The joint industry proposal follows strong denials from the Liberals they have had any involvement in any pre-election deal on poker machines.

And the model will do nothing to appease a coalition of church, union, council

and community groups campaigning for the removal of machines from pubs and clubs, and who argue it is the machines in the community doing the most damage in terms of problem gambling.

Currently venues lease poker machines from the Federal Group, with the group reaping a significant proportion of the revenue.

Under the proposed model, pubs and clubs and the State Government would receive a significant increase in revenue, with Federal out of the equation in venues it does not own.

Federal owns 12 of the highest-turnover pokies pubs in Tasmania.

Federal Group’s poker machine arm Network Gaming would become a gaming monitoring service, responsible for compliance and taxation collection, and services to the industry for a fee.

Federal Group director and chief executive Greg Farrell said the model would provide certainty for the company’s future.

“We think we have done a very good job as the custodian of Tasmania’s exclusive gaming licences since 1973, establishing a successful and responsible industry, with one of the lowest rates of problem gambling in the country, be we recognise it’s time for change,” Mr Farrell said.

“Under the proposed model we would be able to secure the jobs of more than 2000 Tasmanian employees and ensure our casinos are competitive with other regional Australian casinos.”

Tasmanian Hospitality Association general manager Steve Old said the proposal, based on the system operating in other states, would significantly strengthen Tasmania’s hospitality sector.

“This proposal ends Federal Group’s 42-year monopoly and delivers a better deal for hotels and clubs,” Mr Old said.

“When this happened interstate we saw venues employ more people, invest in new products and undertake major redevelopments.”

The proposal reflects what the Liberal State Government has already set out in their gaming policy, which includes keeping machines in pubs and clubs but putting the right to own them to tender after Federal’s monopoly ends in 2023.

The policy also allows for David Walsh to obtain a licence to build a high-rollers’ casino at Mona.

Federal has not said whether

managing the deal with pub owners comes with any specific conditions to cover a loss of revenue resulting from the company owning less machines.

But 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.

In State Parliament yesterday Greens gaming spokeswoman Andrea Dawkins asked Premier Will Hodgman if the Government was preparing to strike a deal with Federal and the Tasmanian Hospitality Association to keep poker machines in the community.

Ms Dawkins said a “significant majority” of Tasmanians wanted poker machines out of pubs and clubs.

“Behind the scenes the vested interests who profit from the misery caused by pokies are lobbying Liberal and Labor MPs to maintain the status quo,” she said.

“Can you confirm that Federal Hotels and the Tasmanian Hospitality Association have struck a deal to try to subvert proper parliamentary process?”

Mr Hodgman rejected suggestions of a deal involving the Government.

“I understand a submission will be made with respect to the future of gaming activity,” Mr Hodgman said.

“It is a matter for the THA and Federal Hotels as to what they do but I reject any suggestion … that suggest a motive, nor indeed anything inappropriate by this government.”

Ms Dawkins asked Treasurer Peter Gutwein if he had met recently with the THA and Federal to discuss a deal.

“Will you now rule out locking in any arrangement with Federal Hotels and the THA before the next state election?” she said.

Mr Gutwein said he met with the THA regularly but had not met with Federal Hotels “for a long time”.

“The Government has not entertained any deal and, importantly, we will consider the report of the committee in respect of its views on our policy position before finalising our policy position before the election,” Mr Gutwein said.

The other key player is Labor, which is awaiting the outcome of a parliamentary inquiry into gaming before formulating a policy on poker machines. That hasn’t stopped MP Madeleine Ogilvie saying publicly she did not think poker machines should be in pubs.

This proposal ends Federal Group’s 42-year monopoly and delivers a better deal for hotels and clubs