Gillard is loving doing over the pokies addicts in the NSW Right

Anti-gambling campaigners across the country are cockahoop today after Julia Gillard signed up to a comprehensive Federal pokies reform program and timetable to secure Andrew Wilkie’s political support.

Those who have observed the caretaker PM during the negotiating period have detected a steely determination to tackle problem gambling. Indeed, there was almost enthusiasm at the prospect of sticking it up the “whatever it takes” merchants in the NSW Right who have long been in the pay of the pokies lobby as this list of political donations demonstrates.

Shares in the five biggest pokies dependent stocks — Crown, Tatts Group, Tabcorp, Woolworths and Aristocrat — have this morning all traded below yesterday’s closing prices in a rising market.

Aristocrat, the world’s second biggest poker machine manufacturer, was hardest hit, losing 7c or 2.35% to $3.74.

However, there’s a long way to go because the three independents could yet prop up an Abbott government and there’s no assurance they will support any federal legislative action even if Labor gets over the line.

The Greens are firmly committed to strong action so all the political uncertainty resides in the House of Representatives.

The registered clubs movement is already fighting back and will no doubt target the two NSW regional independents threatening job losses and less funding for children’s sport.

Whilst the $1 maximum bet threat has been headed off for now, NSW clubs and pubs won’t benefit much from their current $10 maximum bet in a system which has mandatory pre-commitment.

If every player is mandated to register for a non-transferrable USB stick pre-set with a maximum loss of $50 day per day, it will have a profound effect on problem gambling.

Punters don’t walk into a venue planning to lose $5000, but they do get into the zone and then chase their losses.

Sure, players would be able to set their own limit but not many will opt for a big number as no gambler wants to lose.

The clubs movement is already trying to rubbish two pre-commitment trials currently taking place in South Australia and Queensland but these are voluntary systems.

Another potential complication goes to the Commonwealth’s constitutional powers to regulate pokies licences which are issued by cash-strapped state governments.

The Corporations Act does give the Feds substantial power over companies as John Howard demonstrated with WorkChoices, but many licensees in the pokies space are not for profits.

However, the pokies manufacturers are companies and the lines are often blurred with less commercial operators.

For instance, Tabcorp has signed a deal to run the 3000 machines owned by the RSL in Victoria once the new operating system commences in 2012. And we all know Woolworths has managed thousands of machines for AFL clubs.

Similarly, the Penrith Panthers are the biggest pokies club in Australia with 14 different venues across a staggering 2 million square metres of land.

Yet the Panthers have sold a 49% interest in their pokies operation for about $80 million to a listed hotel fund managed by a multi-national Dutch Bank. Have a listen to the full exchanges about the Panthers’ pokies operation with ING Real Estate Entertainment Fund Chair Richard Colless at a unitholder meeting earlier this year.

Another interesting variable going forward will be the ALP’s own four pokies venues in Canberra which Julia Gillard erroneously claimed yesterday did not benefit from problem gamblers.

Given that the Productivity Commission estimated there are 160,000 problem gamblers nationally who generate about $4 billion of the $10 billion in annual losses, it seems strange to think that the Canberra Labor Clubs can magically only drain cash out of occasional recreational players.

The Canberra Labor Club are as thick as thieves with the broader clubs movement, especially given that for-profit operators like Woolworths or hotels are banned in the ACT.

Indeed, these venues were going to be sold to the CFMEU for about $25 million last year to cash up the party for the recent Federal campaign. They’ll be worth a lot less if Andrew Wilkie and Nick Xenophon get their way with mandatory pre-commitment.

*Disclosure: Stephen Mayne ran for the Senate in Victoria on this no pokies platform.


13 Comments

  1. Meski
    Posted Friday, 3 September 2010 at 1:45 pm | Permalink

    USB stick - got any details on that? Smart-cards would probably be cheaper and more secure.

  2. abarker
    Posted Friday, 3 September 2010 at 2:30 pm | Permalink

    But what does it mean for those of us who like the occasional, random flutter? Sometimes I’ll be out for dinner at the local and decide ‘Let’s stick $10 in and see what happens.”

    I’m guessing this will no longer be possible right?

  3. Posted Friday, 3 September 2010 at 2:52 pm | Permalink

    The Commonwealth’s corporations power is based on paragraph 51 (xx) of the constitution which gives the Commonwealth power to legislate on ‘Foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth’ but trading corporations aren’t necessarily for profit. Thus, the federal court has held universities to be trading corporations altho they don’t trade for profit.

    The Returned & Services League of Australia (Victorian Branch) Inc is incorporated under the Associations Incorporation Act 1981 (Vic) and would almost certainly be held to be a trading corporation, partly because it operates pokies. The Penrith Rugby League Club Limited and other members of the ‘Panthers Group’ are incorporated under the Corporations Act and so are definitely trading corporations.

  4. David Sanderson
    Posted Friday, 3 September 2010 at 3:07 pm | Permalink

    I’m all for problem gambling being restrained and this is an excellent way to do it. The idea that that the convenience of casual gamblers should take precedence over the misery caused by compulsive gamblers is callous and offensive.

    A side benefit would be to see the social dominance of these clubs in country towns and working class suburbia reduced. These temples to unrestrained moneymaking and garish tackiness might then be forced to rethink their role.

  5. CLH
    Posted Friday, 3 September 2010 at 4:26 pm | Permalink

    While we are dealing with problem gamblers can we also exile those pathetic losers dithering over their scratchies and lotto in the newsagent queue while righteous newspaper purchasers fume and wait?

    Sorry, it’s a pet hate.

  6. John james
    Posted Friday, 3 September 2010 at 4:46 pm | Permalink

    It is amazing how having a drink, or a bet, or a smoke, are frowned upon by the Left, but sex with the same gender, even a different species, and killing the unborn, are seen as signs of liberation.
    That’s why the genuine working class, the real Labor, or ‘Old Labor” , have little in common with the crazy environmentalists, and latte sipping transvestites, trying to form government in this great country of ours.

  7. Posted Friday, 3 September 2010 at 4:55 pm | Permalink

    Cripes, we’ve spotted a newspaper purchaser! Quick, declare CLH a national treasure and declare their neighbourhood a national park before newspaper purchasers become extinct!

  8. Tim Falkiner
    Posted Friday, 3 September 2010 at 7:19 pm | Permalink

    The pre-commitment requirement will do some good towards limiting problem gambling. The machines are powerful, hypnotic devices, putting the problem gambler into a trace state (the “zone”) and using hypnotic conditioning. The machine creates multiple trance loops using tactile, auditory and visual repetition (NLP – different modalities). This creates a strong hypnotic trance and leads to the disabling of cognitive functions including the disabling of critical judgment. Within the trance state the suggestible subject is subjected to at least three hypnotic suggestions - winning statements on net losses, starved reels/near miss and archetypal symbolism. The trances comprise interlocking trance loops which are stable, unterminated and addictive.

  9. RV
    Posted Saturday, 4 September 2010 at 2:18 am | Permalink

    No-one else has been stupid enough to give your comment the attention you so clearly crave, Mr James, perhaps because there are so many more insane assumptions and straw men contained within it than I would previously have thought possible in so few lines.

    And I was about to attempt it, but instead I’ll just gloat over the fact that despite 1.4 million (statistically, mostly left-leaning) voters being disenfranchised by shonky Howard Government enrolment “reforms”, this traditionally conservative country overwhelmingly voted for parties of the left. You are your kind are on the way out, mate. Try to go quietly.

  10. Not Paul Keating
    Posted Saturday, 4 September 2010 at 5:20 pm | Permalink

    The “old labour” contingent of characters drinking, smoking and gambling themselves to an early death - after a miserable life - are certainly right to be concerned about buggery. After all no multinational capitalist business makes real money out of man-on-man action, while drinking, smoking and gambling keep big business very big indeed.

    What a loser that man is.

  11. Liz45
    Posted Saturday, 4 September 2010 at 6:17 pm | Permalink

    @JOHN JAMES - I think that your lies are the worstaspect of dealing with you. I’m in favour of a woman’s right to choose, but that doesn’t make me a supporter of sex with dogs or??You don’t do your argument any service by just being so outrageous and full of bs? People are born with their sexual orientation, it’s not a lifestyle choice - with bigots like you around, they’d have to be real masochists to want to ‘choose’ a gay or lesbian lifestyle. I heard a priest interviewed on ABC PM the other evening(earlier in the week). His name was ‘James’ and he certainly didn’t seem to be having a wonderful life as a gay priest? This was re the Resolution in the NSW govt re gays and lesbians adopting children. The big lie in this argument is the fact, that they are OK to foster kids now, but the same people are discriminated against if they wish to adopt. There’s a big rationale element in this practice. Let’s hope it’s corrected soon! So far, common sense, justice and not bigotted discrimination has prevailed. Indeed, both the Labor and Liberal leaders voted in favour!

    As others have correctly stated, the majority of Australians did not vote for conservative candidates. 3 Polls out today have stated, that the majority want the 3 remaining Independents to side with a Gillard gov. I hope so too! It’s called ‘democracy’ James, and you either agree with it or you support anarchy! We know that the Coalition believe, that they have a ‘divine’ right to rule - funny how the electorate don’t agree! Your comments remind me of a US president once, when referring to the people of Nicaragua who voted for a left wing govt, ‘they’ll keep on doing it(voting that is) until they get it ‘right’? Emphasis on the right, there James!

    As to your stupid comments re how ‘the left’ feel about drinking, gambling or smoking? You’ve again deliberately chosen to misrepresent my/our views about these aspects of daily life. I tell you, what gives me the s***s, is the NSW govt giving huge tax perks to the pokies industry, the AFL and NRL, and the racing industry($200 million in ‘gifts’ total for these last 3)and a baby is not taken to hospital as its deemed, that there won’t be an available bed, and later dies? Or women miscarry in waiting room toilets due to the same reason. Bring up these realities instead of your glib bs, that you and many others know are just lies!

  12. Ravenred
    Posted Monday, 6 September 2010 at 9:06 am | Permalink

    There’s probably going to be some significant blowback from state governments, both Labor and Colin Barnett. They’ve been smoking the crack of gambling revenue for a while now, and a reduction in supply will make them very cranky. The proposals are hardly draconian, but the AHA and the like are going to be hailing the rise of Stalinist Russia with this policy. Expect serious dishonesty coming from industry in relation to this as problem gamblers are at the heart of their revenue and a lot of concern trolling from state premiers and gaming ministers.

    I’m as concerned about problem gamblers as you, Prime Minister, but is this really the way?”

  13. Liz45
    Posted Monday, 6 September 2010 at 1:28 pm | Permalink

    @RAVENRED - It’s already started in my area. The local bloke who speaks on behalf of clubs etc has already been on ABC radio, whingeing and whining about these proposals. It’s a pity that he doesn’t have the same passion when it comes to people whose whole lives has been destroyed, and sometimes their families as well. Sometimes, this reality results in suicide! Just horrific! I once had a brother in law with a gambling problem, who used the money to get their new bed out of layby? and gambled it. They, like most young couples had little money and two little kids. My sister was not impressed - their marriage finally broke up! It could’ve been worse, she could’ve stayed with him. She later remarried and has been so for 28 yrs now!

    The mantra of ‘we employ 80,000? people’ is also rubbish. If they went back to providing live entertainment for example, they might just find, that people will not leave if the rules re playing pokies are tightened - they might also have more money to go to the club for dinner?

    As to the Stalinist aspect? I heard a person on The Country Hour, ABC, comment, that taking back land or stipulating what can be done, or not done, is communism? Oh dear! Those reds are still under some beds it would seem? I just sighed!