Rate slug on pokies to help gamblers

POKER machine venues in Melbourne's north-eastern suburbs will have their 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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Cr Stephen Mayne said the plan would affect the rates of five out of eight pokies venues in Doncaster, Templestowe and Bulleen.

Moreland City Council introduced double rates for 11 pokies venues in 2010, with the money funding programs and schemes to help problem gamblers.

The Manningham proposal is expected to add $112,000 a year to the council's budget.

In the first year the money will fund a comprehensive study of gambling in the municipality. After that it would be used to help problem gamblers.

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

Cr Mayne said four of the venues were owned by the Woolworths-Bruce Mathieson group: the Shoppingtown Hotel, Doncaster Inn, Cherry Hill Tavern, and Manningham Club. The independent Templestowe Hotel will also pay 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 received only $130,000 in rates from those venues.

Moreland mayor John Kavanagh said the system had discouraged new venues.

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Frequently Asked Questions about this Article…

What is Manningham City Council proposing for pokies venues in its north-eastern suburbs?

Manningham City Council is proposing to double council rates for pokies (poker machine) venues in its north-eastern suburbs. The plan is scheduled for a council vote this month and is aimed at funding programs to address problem gambling.

How many venues and poker machines will be affected by the double rates in Manningham?

The proposal would affect five of the eight pokies venues in the municipality. The council area contains 617 poker machines in total, and since July last year about $33.7 million has been played through those machines.

Which specific venues will pay the doubled rates under the Manningham plan?

Four venues owned by the Woolworths–Bruce Mathieson group will be subject to the double rates: the Shoppingtown Hotel, Doncaster Inn, Cherry Hill Tavern, and Manningham Club. The independent Templestowe Hotel will also pay double rates.

Are any venues exempt from the doubled pokies rates in Manningham?

Yes. Two venues are exempt because they are located on public recreation land, where rates cannot be raised. Additionally, Club Warrandyte is due to exit the pokies business in August and therefore will not be part of the doubled-rate scheme.

How much money will the doubled pokies rates generate for Manningham’s budget?

The Manningham proposal is expected to add about $112,000 a year to the council’s budget if adopted.

How does Manningham plan to use the extra revenue from doubled pokies rates?

In the first year the extra revenue would fund a comprehensive study of gambling in the municipality. After that initial study, the money would be used to support programs to help problem gamblers.

Have other councils used doubled pokies rates to fund problem gambling programs?

Yes. Moreland City Council introduced double rates for 11 pokies venues in 2010, using the additional revenue to fund programs and schemes aimed at helping problem gamblers. Moreland’s mayor also noted the system discouraged new venues.

How much are residents losing to pokies in Manningham compared with what the council receives in rates?

According to the article, residents lost about $65 million playing the pokies last year in the municipality, while the council received only about $130,000 in rates from those venues.