From the President DAVID BASHEER – AHA | SA PRESIDENT
Gaming Trading Round System in Need of Overhaul In 2005, amidst great fanfare, the Rann Government mistakenly believed removing 3000 machines from South Australian pubs would assist problem gamblers. As up to eight machines were compulsorily acquired from our venues with no compensation, in their place were positioned the most expensive pot plants any publican ever purchased. Industry participants at the time would recall pubs were discriminated against, with neither the casino nor machines in clubs subject to a reduction. Out of that flawed policy was born the trading round, with high expectations of a quick reduction of more machines and high prices for entitlements. This was required because when clubs were exempt from the cull of machines, as an afterthought, the Government needed to make up the resultant shortfall of the 3000 machine reduction.
1. The removal of the requirement to reduce gaming machine numbers in South Australia by a total of 3000 from the 2005 level. 2. That the trading system in South Australia should move to an open market model of trading, with CBS having regulatory oversight. THE FACTS After 17 years, South Australia is still around 650 machines short of reaching its target of removing 3000 machines. There is no evidence at all to suggest removing machines assists problem gambling. In fact, the financial year of 2006/07 (immediately after the major cull of 2200 machines) ended as the
highest annual net gaming revenue on record and remains so some fifteen years later. When COVID-19 restrictions were heavily enforced, and capacity restrictions meant venues had between 25% and 50% of machines in play, revenues rose. Back in 2006, the SA Centre of Economic Studies unsurprisingly found the removal of machines had no impact on revenues. It is time to end the fantasy and disruption of the machine reduction strategy as being an effective tool in harm minimisation. ATM and Eftpos changes, along with changes to smoking regulations, ARMS and facial recognition have all been introduced in this time as far more effective harm minimisation tools. Of course, Ministers and regulators need to be constantly reminded
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By any measure, the trading system has been an expensive dud. The AHA|SA is lobbying heavily to have it streamlined and fit for purpose. Fundamentally, the AHA|SA argues for two critical changes to the trading round: 4 | Hotel SA | W W W . A H A S A . A S N . A U
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