Crazy Clubs NSW lash out at plan for Star casino to gain 1000 pokies

The powerful lobby group representing clubs in NSW has lashed out at a plan to allow an extra 1000 poker machines at Sydney’s Star casino, and warned of its potential impacts on regional venues.

NSW cabinet is expected next week to consider a proposal to allow the Star to purchase 1000 under-used gaming machine licences from clubs in regional NSW.

Clubs NSW has criticised a plan that would see Star Casino receive 1000 extra poker machines. Credit:Andrew Meares

Clubs NSW chief executive Josh Landis described the potential deal, which is set to be considered by cabinet on Monday, as “crazy”.

“The casino wants to grow by feeding on the misfortune of regional clubs and pubs, by buying an astonishing 1000 extra poker machines from them at distressed rates because they have been trading so badly in recent years,” Mr Landis said.

“This will have a devastating effect on Sydney clubs, impacting the social lives of millions of people and causing the loss of as many as 2200 club jobs.”

As part of the potential deal with the state government, the Star could in turn develop a new theatre and live performance venue in Sydney.

A spokesman for Star on Friday said any request for additional slot machines for the casino was a matter for the NSW government, adding that the casino currently possessed 1.6 per cent of poker machines in NSW.

“In the right environment we would have aspirations to develop a new theatre and live venue in Sydney,” the spokesman said.

When asked about the cabinet proposal on Friday, Premier Gladys Berejiklian said: “don’t always believe what you read”.

The deal would result in the Star purchasing slot machine licenses from struggling clubs across NSW.

Clubs NSW predicted the additional 1000 poker machines could increase the Star’s revenue by up to $230 million per year.

More than $2.2 billion was lost to poker machines in NSW pubs and clubs in the first four months of this year, with almost $600 million collected in April alone, up 12.58 per cent on April 2019.

The 100 lowest-ranked NSW clubs for recent poker machine profits operate fewer than eight machines on average and are mostly golf and bowling clubs in regional areas.

Walcha (Northern Tablelands) and Blayney (Central west) have both halved the number of poker machines in their five clubs from 26 in total to 13 over the past two years.

Clubs have warned against a proposal for Star casino to bring in another 1000 poker machines. Credit:Louise Kennerley

Wagga Wagga and Albury City have also cut machine numbers by more than 20 per cent since June 2019, removing 93 and 205 machines respectively from nine clubs in those areas.

The Commercial Club (Albury) has 209 fewer machines in the club than it did in June 2019 but still holds 610 entitlements.

Across the state, there are 2949 fewer machines in clubs this month than in June 2020, and 472 of those were moved out of regional areas.

The two most profitable clubs for poker machine revenue in NSW - Bankstown Sports Club, Mt Pritchard & District Community Club Limited (Trading as Mounties) have 1360 machines in total and no spare entitlements. They are both located in capped areas, classified as Band 3 (high risk) that restricts who they can trade or lease gaming machine entitlements from and stops them bringing in machines from clubs or pubs outside their area.

The Star casino is located in a Band 1 area with no cap on new pokies under the trading rules introduced in 2018. Local community caps do not apply to individual venues, but to areas with the highest risk of gambling harm, including the entire Fairfield LGA.

Regional areas had 12,468 poker machines located in Band 3 areas, which are eligible to be traded to the Star, August 2021, liquor licence data shows.

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Tom Rabe is Transport Reporter with The Sydney Morning Herald.

Nigel Gladstone is an investigative journalist at The Sydney Morning Herald.

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