Clubs: Pokies not for sale
THE operator of the Gold Coast’s proposed second casino will be allowed to have poker machines after all — but they’ll have to buy them from the city’s hotels.
Tourism Minister Kate Jones clarified her position on the controversy yesterday, declaring there could be slots in the so-called global tourism hub, but they would have to be sourced from the city’s existing pool of devices.
But clubs last night ruled out selling any of their 3700 poker machines to a casino operator, meaning the only ones potentially available would be about 2300 held by 75 pubs.
Ms Jones insisted she was serious about luring gaming giants to headline on the Coast, but the Government would not add to the city’s 7600 poker machines.
“We believe you can deliver a global tourism hub with no net increase in pokies,” she said.
“The world’s biggest entertainment companies like Caesars Entertainment and Hard Rock no longer rely on poker machines for their revenue.
“The Government’s position has not changed.”
Ms Jones’s comments come two days after she told State Parliament there would no additional poker machine licences granted on the Coast.
In May, the Bulletin revealed Gold Coasters were pumping nearly $1 million a day into slot machines.
There are 5992 poker machine licences on the Coast. However, that does not include the 1600 machines operated by The Star in Broadbeach.
Clubs Queensland president Doug Flockhart said he was “shocked” by Ms Jones’s comments, saying a new casino would need a significant number of pokies to be viable.
“We are talking around 2000-plus machines for any potential second casino operator,” he said. “The Minister is suggesting the only way for the casino to acquire a marketable parcel of machines is to buy them from clubs or pubs and I can tell you unequivocally, our clubs are not for sale.”
Clubs across the Coast have more than 3500 slot machines across 58 locations. The remaining licences are split between 75 pubs.
Pubs are each limited to 45 pokies while clubs can have 300 on a single site.
In the past three years, only 224 machines have been made available and sold through the hotel tender process in the southeast region, with an average price per machine about $162,000. Since 2010, 308 machines have been sold in the entire state via the club tenders.
Casinos cannot normally take part in the purchasing of machines from clubs or pubs.
However, a one-off sale could be allowed for underperforming machines in the event of a second casino being approved.
Surfers Paradise RSL president Ross Eastgate said many of the city’s clubs would struggle to survive if they relinquished licences.
“Clubs would be at risk if they lost the income stream provided by these facilities,” he said. “They are a curse and the people who often play them are those who can least afford it but there is guaranteed income and we would not want to see that stop.
“By giving our machines up to a major operator, it would draw our patrons away.”