Double rates plan on pokies

POKER machine venues in Melbourne's north-east suburbs will have their local council rates doubled to help fund problem gambling programs under a plan to be voted on by Manningham City Council this month.

By InvestSMART · 2 Mar 2012

By InvestSMART ·
2 Mar 2012

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High-profile Manningham councillor Stephen Mayne said the plan would affect the rates of five out of eight pokies venues in Doncaster, Templestowe and Bulleen.

The move follows on from Moreland City Council which introduced double rates for 11 pokies venues in 2010, with the money funding education programs and schemes to help problem gamblers.

The proposal is expected to add an extra $112,000 a year to Manningham council's budget. In the first year the money will fund a comprehensive study of gambling in the municipality. After that the money would be used to help problem gamblers.

There are 617 pokies in the municipality and since July last year $33.7 million has been pumped into them.

Mr Mayne said four of the venues are owned by the Woolworths-Bruce Mathieson group: the Shoppingtown Hotel, Doncaster Inn, Cherry Hill Tavern, and Manningham Club. The independent Templestowe Hotel will receive double rates.

Two venues are exempt because they are on public recreation land and rates cannot be raised, while an eighth venue, Club Warrandyte, is getting out of the pokies business in August.

Mr Mayne said residents lost $65 million playing the pokies last year but the council only received $130,000 in rates from those venues.

With the federal government still working out pokies reform Mr Mayne said it was appropriate for local councils to help out.

"We are best placed to integrate with the local health providers, deal with it from a public health policy point of view and integrate it with our recreation policy to provide alternative forms of recreation," he said.

Poker machine critic and supporter of reform Paul Bendat says increased rates for pokies venues would not help curb problem gambling.

"Local councils will just be added to the list of people [state governments] who are addicted to pokies revenue," Mr Bendat said. "This is not a disincentive for venues."

Mr Mayne said the revenue was so small that the council would not get addicted.

In Moreland the money is used to fund MoreConnect, a program run by reformed gambler Gabriela Byrne for gaming addicts. Ms Byrne's program engages problem gamblers with low-cost activities, non-gaming entertainment and programs running in Moreland.

Moreland mayor John Kavanagh said the system had been effective in discouraging new venues. He welcomed the Manningham proposal.

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Frequently Asked Questions about this Article…

What is the Manningham City Council proposal to double council rates on pokies venues?

Manningham City Council is proposing to double local council rates for certain poker machine (pokies) venues in its north-east Melbourne suburbs. The move is intended to raise extra revenue to fund a comprehensive study of gambling in the municipality in the first year and then support programs for problem gamblers.

Which pokies venues in Manningham will be affected by the proposed double rates?

The plan would affect five of eight pokies venues in Doncaster, Templestowe and Bulleen. Four of those venues are owned by the Woolworths–Bruce Mathieson group (Shoppingtown Hotel, Doncaster Inn, Cherry Hill Tavern and Manningham Club) and the independent Templestowe Hotel will also receive double rates. Two venues are exempt because they sit on public recreation land, and Club Warrandyte is exiting the pokies business in August.

How much extra revenue will the double rates generate for Manningham and how will the money be used?

The proposal is expected to add about $112,000 a year to Manningham council’s budget. In the first year the revenue would fund a comprehensive study of gambling in the municipality; after that the council plans to use the funds to help problem gamblers and integrate initiatives with local health and recreation services.

How does Manningham’s proposal compare with Moreland City Council’s approach to pokies venue rates?

Moreland City Council introduced double rates for 11 pokies venues in 2010 and has used the revenue to fund programs for problem gamblers. Manningham’s proposal follows that approach — using higher rates on pokies venues to finance local gambling education and support programs.

How many pokies are in the Manningham municipality and how much money has been spent on them recently?

There are 617 poker machines in the Manningham municipality. Since July last year, $33.7 million has been pumped into those machines, and residents reportedly lost $65 million playing pokies in the area last year while the council only received $130,000 in rates from those venues.

Will doubling council rates on pokies venues reduce problem gambling, according to the article?

Opinion in the article is mixed. Poker machine critic Paul Bendat argues that increased rates won’t curb problem gambling and will simply add councils to the list of bodies reliant on pokies revenue. Manningham councillor Stephen Mayne counters that the revenue is relatively small and that local councils are well placed to integrate support with health and recreation services.

Are any pokies venues in Manningham exempt from the double rates or leaving the pokies business?

Yes. Two venues are exempt because they are on public recreation land and rates cannot be raised. Additionally, Club Warrandyte is scheduled to exit the pokies business in August, so it would not be subject to the doubled rates.

What kinds of problem gambling programs have been funded with doubled pokies venue rates in Moreland?

Moreland used the doubled-rates revenue to fund MoreConnect, a program run by reformed gambler Gabriela Byrne. MoreConnect engages problem gamblers in low-cost activities, non-gaming entertainment and local programs aimed at reducing harmful gambling behavior. Moreland’s mayor said the system has been effective in discouraging new venues.