Victorian gaming venues spent US$117.3m of profits on themselves

The venues cited the investment as community benefit to secure tax cuts.

Australia.- The Victorian Gambling and Casino Control Commission (VGCCC) has reported that gaming machine venues in the state allocated AU$184m (US$117.3m) from their gambling profits for self-benefit during the last financial year. The clubs justified the spending as community benefit in order to qualify for a tax cut.

Clubs that reinvest 8.33 per cent of their gambling revenue into community projects become eligible for a tax cut. However, the scheme permits them to claim expenses such as renovations, operating costs, and Foxtel subscriptions.

This has caused controversy among councils, public health experts, social service groups and anti-gambling advocates. Hume City Council has criticised the state government for not reforming the scheme despite being urged to do so. Mayor Joseph Haweil accused some clubs of “rorting” the council.

Figures show the clubs directed only AU$13m of gambling revenue toward donations, gifts, and sponsorships for the community, while AU$171m was reinvested into clubs to cover operating costs. According to the group No Pokies at Essendon, which campaigns to have the AFL club divest its poker machine assets, Victorian venues spent AU$3bn on their own operating costs since 2009 while claiming a tax break for community benefits.

To achieve the 8.33 per cent threshold, according to The Guardian, poker machine venues owned by AFL clubs spent AU$8.6m on operating costs last year.

Meanwhile, the minister for casino, gaming and liquor regulation Melissa Horne has introduced the Gambling Legislation Amendment Bill 2023 to Parliament in Victoria. The primary feature is mandatory closure periods for gaming machine areas in venues excluding the state’s casino between 4am and 10am. The rule would come into force by mid-2024.

The bill also allows the minister to prohibit harmful betting activities beyond the state borders of Victoria, for example on sports involving minors. Meanwhile, from December 2023 onwards, players will need to use the pre-commitment system, YourPlay, to use casino gaming machines. By December 2025, the system will be expanded to table games like poker and baccarat, necessitating the development of new table game technology to facilitate compliance.

See also: Australia: player losses on pokies reach US$9.7bn in the past year