Updated May 29, 2020 06:58:22
NSW clubs could welcome crowds of more than 500 people in certain venues from Monday, with the industry boasting it 'heavily influenced' state government decision-making.
Key points:
We're responsible for administering, collecting and managing debts of gaming and wagering tax payable in NSW, on behalf of Liquor and Gaming NSW. Find out more about COVID-19 (coronavirus) and gaming machine tax. The taxes applied to gaming and wagering in NSW are based on: what kind of gambling is being offered; who's providing the gambling. Currently publicans pay 15 percent tax on poker machine profits of $200,000 or less per year. The AHA welcomed the tax certainty, promoting it as a win for small business and a common sense approach by the Keneally Government. AHA (NSW) president, Scott Leach, said the tax changes would provide some welcome relief for at least 1100 hotels. In April 2020, the NSW Government announced the following changes to payment of gaming machine tax as part of its economic stimulus package: Gaming machine tax normally paid by clubs between 1 March 2020 and 31 August 2020 is deferred to 1 September 2020.
- A ClubsNSW circular was sent to members on Wednesday announcing how venues would reopen next week under 'very generous conditions'
- ClubsNSW CEO Josh Landis says in the memo the NSW Chief Health Officer was 'heavily influenced' by the industry association's plan
- The document lays out how more than 500 people will be allowed in large venues with multiple dining areas and they can make use of gaming rooms with poker machines
According to an internal industry document obtained by the ABC, large clubs with multiple dining areas will be able to accommodate hundreds of patrons if they meet certain conditions.
In a memo sent to member clubs on Wednesday, ClubsNSW CEO Josh Landis took credit on behalf of the association for the rapid easing of restrictions across the hospitality sector in the state.
In the ClubsNSW circular, Mr Landis boasted that the NSW Chief Health Officer and other government officials were 'heavily influenced by ClubsNSW's reopening plan'.
NSW Health would not directly respond to this claim but said in a statement it 'will continue to engage with industry groups on the safe reopening of businesses in line with health advice'.
- NSW is the biggest gambling state and poker machines in clubs are the biggest gambling segment. The 69,552 club poker machines tipped in $776 million in state gaming taxes last year. The state take is up from $414 million in 2003 and despite the industry and government rhetoric about curbing problem gambling, the budget estimates forecast.
- In NSW, all clubs get a GST rebate on the first $200,000 of gaming machine revenue. So they pay it, and the NSW government reimburses them. This was supposed to assist small clubs with few gaming machines, that were tax-exempt before the introduction of the GST, but Clubs NSW managed to get it applied across the board to all clubs.
Last week, the NSW State Government announced a limit of 50 people per venue. But large pubs and clubs with multiple restaurants or cafes can accommodate an additional 50 people permitted per dining area.
The ClubsNSW document reveals that discussions were had with the NSW Government about capping that limit to 500 people in venues with multiple dining areas and large floor space.
Mr Landis tells members: 'Following further engagement by ClubsNSW, the upper limit of 500 patrons in a venue has been removed. Instead, the upper limit will be determined by the number of 'dining areas' in the club, in conjunction with the 4 square metre rule.'
The document outlines how additional patrons might be accommodated through the use of the dining area rule.
It suggests clubs may use conference facilities as additional dining areas if they are frequently used for seated dining.
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It also says some clubs may be able to use physical barriers within large rooms to split rooms into different dining areas, although ClubsNSW advises against it.
ClubsNSW advises its member clubs against erecting temporary walls to create additional dining areas and says that making use of some temporary food outlets such as coffee carts and pie warmers might be seen as irresponsible and will not increase a club's admissible number of patrons.
'Managers should also keep the penalties in mind before seeking to artificially increase the venue capacity,' Mr Landis wrote.
According to the document, patrons will not be required to consume food to use club facilities.
Additionally, the kitchens that service the relevant dining areas don't need to be open at all times and patrons do not need to leave the club once the kitchen closes.
NSW first to cash in on pokies reopening
On Monday, NSW will become the first state to allow gambling on the pokies since the COVID-19 shutdown, as confirmed by Deputy Premier John Barilaro late last week.
The ClubsNSW document says that gaming rooms with poker machines will be fully available to members provided a 1.5-metre space is observed between players.
'This may involve switching off machines, removing chairs and/or physically spacing out machines to separate individuals,' the document says.
In a statement, Minister for Customer Service Victor Dominello said that the decision is driven by both health and economic considerations.
'We are working closely with a range of industry groups to save businesses and jobs, but they must comply with the rules and will be closely supervised.'
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Earlier this month, Prime Minister Scott Morrison announced that gaming venues could 'possibly' be allowed to reopen as part of 'step three' of his proposed path out of lockdown by July.
At the time, Chief Medical Officer Brendan Murphy confirmed it would be step three before 'gaming type venues' could reopen.
But it seems that NSW is moving ahead of that advice, and other states with lower infection rates, which do not have plans to reopen gaming rooms as quickly.
In Victoria, gaming rooms are due to remain closed throughout June with no plans yet to reopen.
In Queensland, poker machines are still in lockdown and won't be accessible until at least July 10 according to its 'step-down approach' to COVID-19.
In South Australia, which has only one active case of COVID-19, there is no date set for when poker machine rooms can reopen.
A spokesperson for the Attorney-General in South Australia told the ABC: 'Poker machines have always been at step 3, following the Prime Minister's advice.'
If you or anyone you know needs help:
- Lifeline on 13 11 14
- Gambling Help Online on 1800 858 858
- Beyond Blue on 1300 22 46 36
Anti-gambling advocate Reverend Tim Costello is concerned that NSW is acting too quickly.
'Pokies venues are frequented by elderly people who are most at risk,' he said.
ClubsNSW advises its member clubs against erecting temporary walls to create additional dining areas and says that making use of some temporary food outlets such as coffee carts and pie warmers might be seen as irresponsible and will not increase a club's admissible number of patrons.
'Managers should also keep the penalties in mind before seeking to artificially increase the venue capacity,' Mr Landis wrote.
According to the document, patrons will not be required to consume food to use club facilities.
Additionally, the kitchens that service the relevant dining areas don't need to be open at all times and patrons do not need to leave the club once the kitchen closes.
NSW first to cash in on pokies reopening
On Monday, NSW will become the first state to allow gambling on the pokies since the COVID-19 shutdown, as confirmed by Deputy Premier John Barilaro late last week.
The ClubsNSW document says that gaming rooms with poker machines will be fully available to members provided a 1.5-metre space is observed between players.
'This may involve switching off machines, removing chairs and/or physically spacing out machines to separate individuals,' the document says.
In a statement, Minister for Customer Service Victor Dominello said that the decision is driven by both health and economic considerations.
'We are working closely with a range of industry groups to save businesses and jobs, but they must comply with the rules and will be closely supervised.'
Gambling: Tell us your story
ABC Investigations wants your help to find out more about what happens behind the scenes of Australia's gambling industry; to hear from people who have worked inside the industry and those who have lost money. Fill out our tips form here.
Earlier this month, Prime Minister Scott Morrison announced that gaming venues could 'possibly' be allowed to reopen as part of 'step three' of his proposed path out of lockdown by July.
At the time, Chief Medical Officer Brendan Murphy confirmed it would be step three before 'gaming type venues' could reopen.
But it seems that NSW is moving ahead of that advice, and other states with lower infection rates, which do not have plans to reopen gaming rooms as quickly.
In Victoria, gaming rooms are due to remain closed throughout June with no plans yet to reopen.
In Queensland, poker machines are still in lockdown and won't be accessible until at least July 10 according to its 'step-down approach' to COVID-19.
In South Australia, which has only one active case of COVID-19, there is no date set for when poker machine rooms can reopen.
A spokesperson for the Attorney-General in South Australia told the ABC: 'Poker machines have always been at step 3, following the Prime Minister's advice.'
If you or anyone you know needs help:
- Lifeline on 13 11 14
- Gambling Help Online on 1800 858 858
- Beyond Blue on 1300 22 46 36
Anti-gambling advocate Reverend Tim Costello is concerned that NSW is acting too quickly.
'Pokies venues are frequented by elderly people who are most at risk,' he said.
'ClubsNSW are boasting how they have influenced this policy in terms of lifting the cap of 500. It means these venues have the largest numbers allowed — all for pokies profits.'
ClubsNSW is considered one of the most powerful lobby groups in the country.
It has previously been credited with scuttling proposed reforms to reduce poker machine harm such as maximum $1 bets and mandatory pre-commitment.
The organisation has signed a memorandum of understanding with the Berejiklian Government guaranteeing gaming tax concessions to registered clubs.
The ClubsNSW document advises member clubs that further changes are still possible and subject to 'parliamentary drafting'.
There are massive economic and financial implications at stake — previous estimates made by the industry predicted that unless they were able to reopen soon, up to 40 per cent of clubs could be forced to close permanently.
A ClubsNSW Briefing paper revealed that about 80 per cent of clubs staff — or 35,808 people — have been stood down since the enforced shutdown was announced on March 22.
A spokesman for ClubsNSW said previously clubs had on average experienced an 87 per cent decline in monthly revenue, resulting in a collective $212 million monthly net loss.
Anti-gambling advocates argue the closure of gaming venues has been a welcome relief: earlier this week, the Alliance for Gambling Reform claimed that NSW residents had saved more than $1 billion since poker machines were switched off and an additional $18.1 million per day while they remain off.
The NSW State Government has already deferred payment of millions of dollars in poker machine taxes from previous quarters until September 1.
ClubsNSW did not get everything it asked for during the COVID-19 lockdown.
A source close to the Government told the ABC it resisted lobbying from ClubsNSW to allow club members to gamble online through a clubs portal during the lockdown.
In a statement, ClubsNSW said it 'has not lobbied to allow club members to gamble online through a clubs portal during the lockdown.'
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The information contained in the ClubsNSW circular, Further Information on Easing of Restrictions on Clubs, said the guidelines were 'confirmed by NSW Health and the Chief Health Officer following ClubsNSW's Engagement'.
A spokesperson for NSW Health told the ABC that the reopening of gaming rooms was subject to public health orders which had yet to be resolved.
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In April, ClubsNSW put forward a plan to NSW Premier Gladys Berejikian to reopen venues which was reviewed by 'an eminent infectious disease expert'.
The ClubsNSW circular sent out this week says that the reopening will stop short of previously discussed measures and 'temperature checking of patrons will not be required'.
A NSW Health Checklist provided to clubs states that businesses should develop a COVID-19 Safety Plan to comply with Public Health Orders.
It includes a directive to 'clean frequently touched areas and surfaces several times per day with a detergent or disinfectant solution or wipe … this includes electronic gaming machines.'
The ClubsNSW circular does not provide any specific instructions on how this will be carried out.
Minister Dominello told the ABC: 'The number one priority is saving lives and community safety.'
Noting that penalties apply for breaches of public health orders, ClubsNSW CEO Josh Landis also warned individual clubs across the state that there would be a cost for not following the rules.
'ClubsNSW strongly urges clubs not to seek to push the boundaries of these very generous conditions to avoid significant reputational damage to the club, management and the industry.'
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Topics:clubs-and-associations, covid-19, hospitality, gambling, sports-organisations, state-parliament, states-and-territories, sydney-2000, nsw, australia
First posted May 29, 2020 05:04:00
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