Review of licences could put an end to pokies - Monday 12th of September 2005
PROBLEM gambling fuelled by poker machines could be a thing of the past by 2012 if the State Government of the day decides it can do without the cash the machines generate for state coffers, totalling almost $850 million last financial year.
The Solicitor-General has advised there is no legal impediment to the State Government ending gaming in Victoria when the current licences expire in 2012, according to documents obtained by The Sunday Age.
The briefings released under freedom of information also demonstrate a remarkable liability on the State Government, with betting giant Tabcorp to receive a windfall payout of about $597 million when its pokies licence expires.
Tabcorp will get the money regardless of "whether or not they are an applicant for or holder of the new licence", a brief from the Department of Justice indicates.
A State Government spokeswoman, Sofia Dedes, said "the Government has made a commitment to a thorough review of the industry structure and, because of this review, the liabilities created by the previous government will be accounted for".
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AdvertisementInterchurch Gambling Taskforce spokesman Mark Zirnsak said the payment could affect the Governments review of gambling licences.
Mr Zirnsak described the payment as outrageous.
"Tabcorp has been able to make enormous profits on pokies, often off the backs of the most vulnerable in society at the cost of people losing their homes, their marriages and their life savings and now it will gain a huge additional windfall at the expense of the taxpayer," he said.
The Government is expected to begin a review of electronic gaming machine and wagering licences within weeks, with consultations throughout 2006.
The other leading gaming machine operator in Victoria, Tattersalls, is entitled to a similar windfall payment as Tabcorp in 2012, but only if it does not secure a new gaming licence.
An announcement of the post-2012 structure will be made after the next state election in 2007, but there is no legal requirement on the State Government to renew the licences.
In a ministerial brief on "advice obtained from the Victorian Government Solicitor and the Solicitor-General", the Government was advised it was not required to renew the licences. "There is nothing in the legislation … It does not extend to requiring Government to renew the licences," the brief said.
Gaming Minister John Pandazopoulos has already ruled out reducing Victorias 30,000 gaming machines.
Ms Dedes said the Government "will honour the commitments given to the holders of the current Victorian licences to own and operate gaming machines".
Tabcorp spokesman Bruce Tobin said the company was "well advanced in its preparations for the licence-review process", and was in a strong position to retain its gaming and wagering licences.
Victorians lost $2.4 billion on gaming machines in 2004-05, with the State Government collecting $842.6 million in taxes from gaming machines and another $112.4 million in gambling taxes from the casino. Mr Tobin said Tabcorp disagreed with the proposition that problem gambling could be best addressed by "altering or limiting the gaming product and gaming environment".
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