Pokie hotels won't lose out
2004/4/18 18:25:00

SOUTH Australia's biggest poker machine operators will not necessarily lose any machines under State Government plans to cut pokie numbers by 3000.

Gambling Minister Michael Wright has revealed that once operators have surrendered a specified number of slot machines, they can simply buy replacements from other venues.

Under the proposal – which has to be ratified by Parliament – a trading period for the buying and selling of licences for individual machines will be allowed.

This is currently not permitted.

The revelation has angered anti-pokie groups who say it undermines any attempt to rein in an epidemic of problem gamblers.

"Pokie barons won't be affected at all by the reduction in machines because they will still be able to go and buy others and keep their 40-machine maximum," Janet Firth, of Break Even, said.

"In fact they may also attract the gamblers who used to go to the smaller venues before they sold their machines.

"Not reducing the maximum number of machines allowed in `super-venues' is ridiculous."

Industry sources say pubs and clubs with low pokie revenue turnover will willingly sell machines.

The Australian Hotels Association estimates poker machine licences could cost between $10,000 and $30,000 each.

If Parliament passed the legislation, the 202 venues around the state that have the maximum 40 poker machines will each have to give up eight machines.

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The number is lower for those with fewer machines.

In an interview with the Sunday Mail, Mr Wright said he expected many super-venues – which offer discount meals and reward schemes – would replace their confiscated machines.

"We expect some venues would trade back up to 40 machines," Mr Wright said.

"The bigger venues are more successful but not everyone is trading successfully and pubs and clubs have told us they will use the opportunity to (sell pokie licences and) exit the market for gaming machines."

The legislation, to be put to a conscience vote in Parliament next month, has been described by Premier Mike Rann as a test of his leadership.

Mr Wright said the decision to maintain the 40-machine maximum was recommended by the Independent Gambling Authority.

"In its report, the IGA said fewer venues would provide less access to gambling and fewer problem gamblers," Mr Wright said.

"If we simply decreased the maximum number of machines from 40 but kept the same number of venues we wouldn't have achieved what the IGA asked us to consider."

AHA state president Peter Hurley admitted many big venues would "top up" their machines back to the maximum 40 and not suffer any downturn in trade.

"The IGA's scheme promotes the transfer of lower-performing and lower-taxed gaming machines into higher-performing and higher-taxed venues," he said.

No Pokies MP Nick Xenophon said he would move amendments to "clip the wings of pokie barons" by reducing the limit from 40 to 32 machines.

"There is a real concern that the trade in machines will see a concentration of pokies at super-venues," he said.

Mr Wright said the reduction in pokie numbers from 15,000 to 12,000 was part of a "multi-layered" approach to reduce problem gambling which included a new code of practice limiting pokie adverts from April 30.

Also from July, relatives of problem gamblers would be able to have them banned from pokie venues using Family Protection Orders. Mr Wright said it was too early to determine what impact the measures would have on reducing the state's estimated 20,000 problem gamblers.

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