Saturday, July 21, 2012

Pokies Part Three


Following is my letter to the Milton Ulladulla Times editor on the poker machine issue. The ex-servis are seeking a 20% increase in the number of machines- some links follow to the papers website.


The Milton Ulladulla Ex Servos raised some interesting points in the recent article on the proposal to increase poker machines.

On the same day the paper highlighted the need for food aid and a community food bank, showing that we are indeed a disadvantaged community. The ABC on 7.30 reported on the GetUp vs Woolworths poker machine case.

In its application to the Liquor and Gaming Authority the club submitted a Local Impact Assessment (LIA) . When compared to the clubs financial reports and the article in the paper it presents a number of contradictions or anomalies.

According to this statement the club provides $295000 worth of donations to the community or about 6% of the money it makes on its poker machines. However on perusal of the Clubs financial statements available online, it is virtually impossible to ascertain the amount.

The club has declared in the LIA that twenty new machines will create 2 new part time jobs, I find this difficult to believe when the clubs balance sheets show an actual decrease in staff by 7 over the last year. Declining staff numbers is a consistent theme for clubs who operate more like casinos than not for profit organisations.

According to the LIA Shoalhaven City Council approached the club for funding to assist the West Ulladulla Sporting Fields, this is simply untrue. The club sought direction from Shoalhaven City Council if it was in a position to provide funds.

Mr Wilkins also states that the club will phase the new machines in over a five to ten year period, yet the LIA seems to contradict this, by stating that by year two, each machine will generate $25,000 profit, the current rate of profit per machine is $55,000.

It was interesting to note also that the club failed to recognise the 2001 study done by the Gambling Impact Society in conjunction with the Community Resource Centre into the local impact of gambling. It was found that Ulladulla is a ‘high risk’ area due to high youth unemployment, underemployment and the number of retirees.

The club holds assets worth $15.3 million dollars and is in debt $5 million, but similar to the householder this is a risk decision that the club makes knowing its current income and expected future income. The business model taken by the club is not something Mr Wilkins should expect sympathy for.

The NSW State Government is addicted to poker machine revenue and has the largest number of poker machines per capita in the world. Clubs NSW seem to be suffering from bipolar unable to decide if they are not for profit ‘mutuality’ associations or corporate businesses.

80% of Australians want poker machine reform and Shoalhaven City Council should not capitulate to funding offers. Council should honour its commitment to its own community strategy that prioritises reducing the impact of problem gambling.

I thank the Gambling Impact Society for provision me with statistics for this article.
Follow this link for how the paper reported it:
the article goes across three pages.

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