online craps casinos

Pokies Issue Heats Up Down Under

Posted on April 19th, 2011

News Sponsored by Online Vegas Casino

Rated 5 Stars by crapsonline.com

Read Review

Visit Casino

Download Software

————————————————

South Australia’s largest pokie operator, Woolworths, generates an annual income of $ 60 million and owns more machines than the Adelaide Casino. This lucrative business has compelled major corporations such as Woolworths and Coles to consolidate their resources in order to capture a bigger slice of the market. However, reforms aimed to limit gambling problems are slowly gaining ground among the public which have placed these pokie barons on the defensive. In response, the Australian Hotels Association, with Woolworths representatives on the executive board, have spearheaded a $ 20 million advertising campaign to neutralize the effects of these proposed reforms. Some proponents have demanded that supermarkets reveal how much they are spending for the campaign.

Nonetheless, Woolworths’ Australian Leisure and Hospitality Group has denied involvement in the funding of the “it’s un-Australian” campaign. Records from the Office of the Liquor and Gambling Commissioner show that the Hurley Family, which controls pubs like the Alma Tavern and the Arkaba, has dominated SA’s non-corporate pokie business. Woolworths on the other hand, manages and operates 32 pubs including Brighton’s Esplanade Hotel and Henley Beaches’ Ramsgate, earning $ 60 million annually for its 990 SA machines. Having acquired the Taverner Group and other independent hotels, it has doubled its SA machines in 2007. Meanwhile, Coles, through its Liquorland and LH93 chains, along with Brighton Metro Hotel, has stakes in 235 machines generating some $ 14.4 million in yearly income. The whole supermarket chains control 1225 poker machines with an annual income of $ 74.4 million, more than the 985 pokies managed by Adelaide Casino. Pub Group, with Stephen Bushaway and Greg Maitland listed as directors, own 10 venues operating 338 poker machines and earning $20.6 million annually. South Australia has a total of 12,900 pokies accruing $ 742 million in 2010 alone.

The independent SA Senator Nick Xenophon, reports that these figures contradict industry claims that the small-scale and struggling clubs and hotels stand to lose more if these reforms are enacted. He also asserts that the people behind the misinformation campaign against gambling reforms are those from the major corporations. He reminded Woolworths and Coles to be more open in their dealings with the Australian public. On this regard, Sen. Xenophon and Tasmanian MP Andrew Wilkie have demanded that the federal government force pubs nationwide to install pre-commitment smartcard technology. Australian Hotels Association SA Gen. Manager Ian Horne confirmed that recently, there had been substantial industry consolidation, but admits that majority of pokie clubs, mostly owned by small-scale operators, could hardly afford the technology. He added that the state had initiated steps in minimizing harm from gambling, and many clubs have supported the trial schemes on voluntary spending limits.

Since SA has the oldest pokie fleet in Australia, many of these pubs will be burdened with a $265 million bill if ever the reforms push through. Mr. Horne was quoted as saying that “The small-end of the market is terrified by the implications of this. They simply don’t have the capacity to meet the technological requirements that Wilkie is trying to impose.” He then explained that the current anti-pokie reforms could prove detrimental to the existing industry. A spokesman for the Australian Leisure and Hospitality Group, David Curry decried that requiring a “license to play”, would not stop gambling problems. He added that they would much rather favor the voluntary measures tested in SA as the more effective alternative Confronted with how much financial support their group provided to the anti-reform campaign, he replied, “We have not made any payment above what our normal membership fees are.” and refused to expound on Woolworths’ annual contribution to the hotel lobby.

After continuous refusal to commit SA to the Wilkie plan, Gambling Minister Bernard Finnigan has preferred to work with the Commonwealth and other states in the implementation of reforms while addressing revenue implications. Should SA be forced to sign up to the smartcard technology, it will not only lose $ 421 million and affect its Budget for the next three years, but also forfeit its pokie taxes. Prime Minister Julia Gillard has until May 31 to secure an agreement with the states or legislate unilaterally by the 2012 Federal Budget. This week however, New south Wales Premier Barry O‘Farrell insisted that he would challenge the changes if forced on his state by Canberra and believes that regulating pokies was not a federal issue.