Discussion on SEN: Pokie revenue

[Carnport]

Discussion on SEN: I've forgotten the exact amounts, and only Vic clubs have really been discussed, but clubs are earning $100,000 a year per machine per year. WA clubs not involved at all. Eddieethicalwood close to $20 mil/annum. Personally, I think this is disgraceful as I hate the things. They are simply the electronic equivalent of theft in my opinion.

Does anyone know if Port does the same and if so how much and where the money goes?

 

[Spadge]

like it or not Pokies are a big money earner for most sporting clubs

 

[shaz63]

WA clubs dont have them at all. The last I knew the only place you could play the pokies at the Burswood casino in Perth.

 

[sabby]

If it means we get more money to upgrade training facilities and hire the best coaches im all for it

 

[Carnport]

I guess the issue for me is the particularly insidious nature of pokies. You have to ask yourself from where/whom is this money coming, what else could/should this money be spent on, and what are the costs to the community as a whole of this actvity? I guess I found the $20 million figure staggering. Perhaps naivety on my behalf but I just wouldn't have guessed anywhere near this mark. Surely there is money to be made in property, for example, rather than deliberately targetting supporter's weaknesses?

Does anyone know how much revenue pokies generate for Port (REH)???

 

[The Floodbuster]

The Port Club was leased out and has only recently gone back into the hands of the Port Club. It would turnover about 350-400K per week, probably bank around 30K a week before gaming taxes etc. Don't forget most of the profit goes to the government.

 

[Natman]

The Port Club was leased out and has only recently gone back into the hands of the Port Club. It would turnover about 350-400K per week, probably bank around 30K a week before gaming taxes etc. Don't forget most of the profit goes to the government.

I'm not sure that the Port Club was leased out - I think that the management of the facility was outsourced to a professional group to make it work and be more profitable. And you are also correct that the club has taken back the management.

FWIW the pokies are most probably the only thing keeping the Port Club viable - it has struggled over the more than 30 years that I have been going there - it just has never worked (ie profitability) like it should (footy success and members) for whatever reasons, despite that fact that the club has worked hard to try different things.

 

[erical]

I guess the issue for me is the particularly insidious nature of pokies. You have to ask yourself from where/whom is this money coming, what else could/should this money be spent on, and what are the costs to the community as a whole of this actvity? I guess I found the $20 million figure staggering. Perhaps naivety on my behalf but I just wouldn't have guessed anywhere near this mark. Surely there is money to be made in property, for example, rather than deliberately targetting supporter's weaknesses?

Does anyone know how much revenue pokies generate for Port (REH)???

No one is forcing anyone to gamble are they?
Just like nobody has their arm twisted to drink alcohol,smoke cigarettes or do drugs.
Gambling is a persons life choice.Whether they can control their gambling is no ones fault other than that particular individual.
It is hardly anyones business to be critical of any club or pub trying to make money any way they can.
Perhaps they shouldn't sell alcohol over the bar because one person in 10 is a hopeless alcoholic.Or sell soft drink to children because it could make them obese or rot their teeth.
I am afraid there are too many do gooders in the World Today.
It sort of reminds me of how someone on TV the other day said we should all boycott the banks because they are putting up interest rates.Unfortunately those banks need to make a profit for their shareholders which are every single one of us through our superannuation schemes.
Boy didn't everyone complain 4 or 5 years ago when those super schemes went backwards for the financial year.

 

[RussellEbertHandball]

Discussion on SEN: I've forgotten the exact amounts, and only Vic clubs have really been discussed, but clubs are earning $100,000 a year per machine per year. WA clubs not involved at all. Eddieethicalwood close to $20 mil/annum. Personally, I think this is disgraceful as I hate the things. They are simply the electronic equivalent of theft in my opinion.

Does anyone know if Port does the same and if so how much and where the money goes?

Is that $100k turnover per machine? Is that $100k gross profit per machine? Or is that $100k net profit per machine?

There was a report in the Sydney media 2 or 3 years ago (maybe 5, sometimes you lose track of time), that the average pokie machine in a NSW club or pub produced $84,000 NET PROFIT per machine, per year to the owner. Given that by law the machines have to pay out somewhere between 80% to 85% turnover and NSW government tax, which has gone up since this report of a few years ago, of about 10% of turnover, you get an idea how much money is pumped into each machine on average in NSW.

It's probably why NSW has 20% of all the pokie machines in the world operating within it's borders. Also most state governments earn about 20% of state tax revenue ie outside of federal government grants, from all forms of gambling taxes of which pokies provide the majority of these taxes. It's why several state governments are addicted to pokie taxes and can't get rid of pokies. As an idea of how profitable having pokies are for pubs which can be sold, the price/earings ratio of pubs is somewhere between 12 and 17. So for every $1 of profit a pub makes they could sell the business for somewhere between $12 and $17. That's why pubs in Sydney have become so expensive because if pokie licences are attached to them, they are worth a fortune. So if 15 years ago you got 20 licences for your pub, probably paid the government $10,000 per licence you are now sitting on a goldmine. It's also why venues for live music around Sydney and NSW, and the rest of the country have disappeared. Why take up the floor space with a stage and dance floor for music when you could fill them with pokies? It has helped to kill the great Aussie pub band.

Several years ago in NSW a bit of a racket started whereby people would buy country pubs with the right to pokie licences, the new owners would also own pubs in the city and just transfer licences to their city pubs. This practice has now been outlawed.

The Port Club turned over about $4.2mil in 2006 and I guess the club would have somwhere between 20 to 30 pokies. The Port Club's 2006 financial staements say that Gaming - NGR provided revenue of $2.5mil. Not sure what NGR stands for, but $100k turnover per machine sounds a reasonable figure. SA pokies are not anywhere near as profitable as NSW pokies.

Edit: If NGR stands for Net Gaming Revenue then who knows how much each machine turns over. For example if you put $10 into a pokie and it pays you out $8.50, you then rebet that $8.50 and lose it all, I presume that the turnover figure is $18.50 and government tax is paid on $18.50. I'm not sure what figure is then used to calculate Gaming - NGR but logic says $10-$8.50+ $8.50. Maybe deduct the government tax from that. I'm just not sure.

 

[RussellEbertHandball]

Eddieethicalwood close to $20 mil/annum.

Collingwood reported "social club and gaming revenue" of $15.5mil in 2007.This is all revenues from their 4 pubs and social club. Pokies turnover would be closer to $10mil/year or less, rather than $20mil/year.

 

[Teagueeee15]

Collingwood reported "social club and gaming revenue" of $15.5mil in 2007.This is all revenues from their 4 pubs and social club. Pokies turnover would be closer to $10mil/year or less, rather than $20mil/year.

Somebody who works in the gaming industry in Victoria rang up SEN during the discussion and said that the Clubs make profits of around $12,000 per machine. Most of the overall profits go to Tattersalls and the state government.

 

[RussellEbertHandball]

Somebody who works in the gaming industry in Victoria rang up SEN during the discussion and said that the Clubs make profits of around $12,000 per machine. Most of the overall profits go to Tattersalls and the state government.

Yeah each state government has a different set of rules. But gambling tax revenue in Vic which includes taxes on Tattersalls as well as pokie taxes is around 20% of total state government taxes like in NSW.

 

[Andre]

Gambling is a personal choice. If supporters (presumably) want to put money in pokies, better at the Port club then elsewhere. As long as adequate measures are in place to stop 'problem' gamblers then the more money through them the better.

I don't see the appeal in pokies myself (or gambling in general, except the weekly lotto tickets or yearly trip to the casino), but as I'd rather people play the pokies then smoke (and have me as a non-smoker have to pay their medical bills for their lack of willpower) or drink (and risk them driving and writing me or a loved one off) I've got no ethical problems with our on-field success being partly funded by those seduced by the flashing lights and pokey sounds of pokie machines. You could go a step further and say it's ironic that clubs on-field strength is greater the weaker their supporters are off-field.

 

[P.A.F.C]

No one is forcing anyone to gamble are they?
Just like nobody has their arm twisted to drink alcohol,smoke cigarettes or do drugs.
Gambling is a persons life choice.Whether they can control their gambling is no ones fault other than that particular individual.
It is hardly anyones business to be critical of any club or pub trying to make money any way they can.
Perhaps they shouldn't sell alcohol over the bar because one person in 10 is a hopeless alcoholic.Or sell soft drink to children because it could make them obese or rot their teeth.
I am afraid there are too many do gooders in the World Today.
It sort of reminds me of how someone on TV the other day said we should all boycott the banks because they are putting up interest rates.Unfortunately those banks need to make a profit for their shareholders which are every single one of us through our superannuation schemes.
Boy didn't everyone complain 4 or 5 years ago when those super schemes went backwards for the financial year.

I agree. I think the Port Club should start their own drug dealing syndicate. After all, it's the persons choice and who are we to judge what the club does to earn money?

 

[The Floodbuster]

PAFC -

Drug Dealing is illegal, having Poker machines is not.
That is a piss weak attitude to take, do u also think service stations, supermarkets etc should sell drugs as they are selling cigarettes that are legal also.

It is the government who makes the decisions so don't blame Pokies, Pubs or the Port Club for that matter.

 

[erical]

PAFC -

Drug Dealing is illegal, having Poker machines is not.
That is a piss weak attitude to take, do u also think service stations, supermarkets etc should sell drugs as they are selling cigarettes that are legal also.

It is the government who makes the decisions so don't blame Pokies, Pubs or the Port Club for that matter.

Well said

 

[shaz63]

I agree. I think the Port Club should start their own drug dealing syndicate. After all, it's the persons choice and who are we to judge what the club does to earn money?

PAFC -

Drug Dealing is illegal, having Poker machines is not.
That is a piss weak attitude to take, do u also think service stations, supermarkets etc should sell drugs as they are selling cigarettes that are legal also.

It is the government who makes the decisions so don't blame Pokies, Pubs or the Port Club for that matter.

Floodbuster, Im sure that above comment by P.A.F.C was a sarcastic reply.. Thats the way Ive read it and Im sure thats how he/she meant it.

 

[RussellEbertHandball]

And on queue comes a story today in Sydney's Daily Telegraph on how much money pokies in pubs are now racking up for owners and the government.

This story is only about pubs so you can add all the Leagues clubs and sporting clubs in NSW. Admittedly the big pubs in Sydney make a lot more money per machine than even the big clubs but its a huge industry.

http://www.news.com.au/story/0,23599,22857894-421,00.html

Hotels rake in $1.7bn a year from poorest suburbs
EXCLUSIVE by Clare Masters
December 03, 2007 01:00am

SYDNEY's richest pubs earn more than $6 million a year each from poker machines - and rake in about $220,000 profit from each device.

But the hotels' pokie riches have come at the expense of Sydney's poorest residents, with the highest profits overlapping areas where mortgage stress is greatest.

Exclusive figures show local government areas that are being blitzed by gamblers match up with the mortgage belt, where struggling working families are losing their homes.

The records reveal NSW hotel revenue in June 2007 topped $1.699 billion - up from $205 million in June 1997.

And The Daily Telegraph has learned the skyrocketing profits have sparked anger among government officials amid concerns the Iemma Government may increase the number of machines allowed into hotels.

The revelations come just a week before the finalisation of the review of Gaming Machines Act, which is due to be handed down by December 19, but The Daily Telegraph understands it is expected to be tabled on December 13.

Speculation in the industry points to the review lifting the cap on poker machines numbers from 30 to 40 and a change to the current shut-down hours but Gaming and Racing minister Graham West has ruled out any radical reforms to the number of machines allowed in each hotel.

However, with sectors of the industry concerned the upcoming review will push up the cap, the latest records can now be been made public.

This explosive data reveals for the first time the extent to which the State Government has allowed pokie entitlements to turn some hoteliers into one-man casinos.

Normally kept under wraps for security reasons, the data shows the State Government is creaming $53,866,060 in tax dollars from the top 25 hotels alone.

While official figures on the Government's gaming authority website puts the average gaming machine profit at $44,054 per machine - this data shows the top 25 richest hotels are raking in between $220,000 and $250,000 per pokie.

The data shows for the first time the concentration of gambling by individual hotel and local government area.

A table of the top 25 hotels leaked to The Daily Telegraph shows the 748 poker machines spread across Sydney's fat cat establishments drag in $219,528 per pokie, with the Government taking $72,038 in tax dollars from each machine.

West and southwest Sydney takes out the dubious top honours, with the Hurstville Ritz Hotel coming in first place for the past two years for making the most profit per machine.

Meridian Hotel in Hurstville came in second in 2006-07 while Burwood Hotel was in third place, the Oasis in Beamish in Campsie was fourth and The Castle Hill tavern in northwest Sydney was sixth.

Home repossessions are rising in similar patches of Sydney.

 

[Ford Fairlane]

It's interesting to note that the Executive Chairman on the South Sydney Rabbitohs - Peter Holmes a Court - has acknowledged the social cost of poker machines (exacerbated by their social gradient as the above article illustrates) and that for the sake of a genuine community club, he wants South Sydney's renovated leagues club to re-open without pokies.

http://www.smh.com.au/news/opinion/poker-machines-a-curse-we-can-well-do-without/2007/09/19/1189881591961.html?page=fullpage#contentSwap1

Poker machines: a curse we can well do without
Sydney Morning Herald
Peter Holmes a Court
September 20, 2007

When leagues clubs were given poker machines in 1956, the goal was not to have more casinos. The goal was to provide leagues clubs with the funding to do positive things in the community. The goal was to help Australians in the healthy pursuit of playing football and for a district to feel good about itself by having a first grade side.

Fifty-one years later, the machines have an undeniable social cost. We know there's a disproportionate number of machines in lower income areas in the state. I would point out there are no machines in the bloody nice suburb in which I live. We know that 30 to 70 per cent of the money that goes through poker machines, depending on the study that you read, consists of welfare payments. We know 30 to 50 per cent of the gamblers on poker machines are people who are gambling more than they want to. It is not a matter of judging them: they are the ones who don't want to gamble that much.

I want to make it clear that I'm not judging any other clubs or people who enjoy a sensible flutter. I enjoy a wager from time to time and my maximum bet is usually 25 cents. But there is no doubt that all the research shows an enormous amount of damage is done by the preponderance of gaming machines.

We believe it makes good business sense for South Sydney Leagues Club to reopen from renovations next year without pokies. We've been told by our members and our sponsors that they want to be involved in a different type of club. The overwhelming response since the announcement has been to support it.

Our vision for Souths is to see the community at the heart of the Rabbitohs and the Rabbitohs at the heart of our community. We've got a job to turn around a football club and it's really important that our whole area turns around, starting in Redfern. It doesn't make sense to put a high number of machines into a high unemployment area. We want to have a positive effect on the community.

A football club exists in the community in a symbiotic relationship. We're there to represent the community on the field and we exist because of their support. We survive today because of the support of average Australians who buy membership, merchandise and tickets to support their club - and the support of companies, large and small, which sponsor the club. When it comes to corporate social responsibility, our sponsors, from the local print shop to Virgin Blue, are telling us the more that we do in the community, the more they'll support us; and our members are saying the more that you do in the community the more that we want to support our club.

People ask us how we're you going to make money without pokies. There are entire countries where pubs and clubs do not have poker machines yet they make money. We have a lovely state to the west, which I am from, which has resisted poker machines. Western Australia has plenty of great pubs which make very good profits.

There is no reason to believe that the only thing that makes clubs profitable is gaming machines. We want to attract more people to the club by creating a family environment with good food and opportunities for fans to meet and greet our players. A lot of people find that difficult to really enjoy a cleansing ale when they see someone in the background putting money into a machine.

I believe most of the community want to help those who have gaming issues and the way to do that is to support clubs and pubs which don't have machines.

As for the funding of junior sport, the Government should support it directly rather than via pokies. Junior sport should be supported more than it is today. We know with junior sport that if you get kids into the rigour of turning up, training hard, learning discipline, learning disappointment when they lose, how to work as a team, we know it has an incredibly positive effect on the community.

The Government should support junior sport because it makes better citizens and better learners.

This piece was dictated by Peter Holmes a Court, executive chairman of South Sydney Rabbitohs, from a lounge at Sydney Airport.

 

[RussellEbertHandball]

Checked a couple of things on Gaming Machines Act in SA.

72—Interpretation

In this Part—
"net gambling revenue" or "NGR", in relation to the holder of a gaming machine licence and a financial year, means the total amount of all bets made on the gaming machines on the licensed premises during the year less the total amount of all prizes won on the machines during the year;

Tax is paid on a sliding scale and varies also depending on whether the organisation is a Not for profit business or not. For Port the tax is the not for profit rate, which starts at 0% for the first $75k then starts at 21.0% in the first band over $75k. Given the Port Club had reached the $2.5mil NGR amount in 2006 the tax rates are;

$2,500,001 - $3,500,000 - $770,200.50 plus 47% of excess NGR over $2,500,000

Above $3,500,000 - $1,240,200.50 plus 55% of excess NGR over $3,500,000

The Holmes a Court decision in September, which Ford posted, was a big thing in Sydney when he announced it. It was front page news, lead article on TV and radio news and was big on talkback radio. As it was around 20 September I was in serious lock down finals footy mode and can't remember discussing it on these boards. A gutsie decision by Holmes a Court and Crowe. Most NRL clubs are attached to seperate Leagues clubs who make large grants to the Rugby League club, for some it's as high as 1/3rd of their revenue.

 

[Ford Fairlane]

Checked a couple of things on Gaming Machines Act in SA.



Tax is paid on a sliding scale and varies also depending on whether the organisation is a Not for profit business or not. For Port the tax is the not for profit rate, which starts at 0% for the first $75k then starts at 21.0% in the first band over $75k. Given the Port Club had reached the $2.5mil NGR amount in 2006 the tax rates are;

$2,500,001 - $3,500,000 - $770,200.50 plus 47% of excess NGR over $2,500,000

Above $3,500,000 - $1,240,200.50 plus 55% of excess NGR over $3,500,000

The Holmes a Court decision in September Ford post was a big thing in Sydney when her announced it. It was front page news, lead article on TV and radio news and was big on talkback radio. As it was around 20 September I was in serious lock down finals mode and can't remember discussing it on these boards. A gutsie decision by Holmes a Court and Crowe. Most NRL clubs are attached to seperate Leagues clubs who make large grants to the Rugby League club, for some it's as high as 1/3rd of their revenue.

That the comment came from someone running a NSW-based RL club made me sit up and take notice. And it really puts the onus on football clubs becoming part of the community again, and not just seeing the community as part of a big cash cow. Maybe that's the way to start increasing crowd numbers.

Of course even if clubs eschew pokie revenue, it's not likely government will. The NSW figure was staggering, and I think the figure for Victoria was 11% of state taxes in 2002.

 

[Dobie G]

This is on the Vic AFL clubs only, showing how they prey on people's misery, guess Port would be no different?
Pretty sad that revenue can't be earned from more "legitimate" sources rather than from broken families and relationships.

Source

AFL clubs have ignored an offer to help them get out of poker machines.
Victorian clubs instead are increasing their reliance on pokies cash.
It is now 19 months since AFL boss Andrew Demetriou said clubs had shown an interest in selling machines.
The league was "prepared to open the batting on being the intermediary for them", Demetriou said.
But the Western Bulldogs are seeking to add 18 machines at their Dromana venue - almost double the current number.
Carlton, Collingwood and Richmond have added more machines to clubs in Bulleen, Ringwood, Caroline Springs and Wantirna since Demetriou's statement.
Gambling-related revenue from the Victorian AFL clubs' 1466 machines tops $100 million a year.

More

Another angle from the spin on pokies, AFL clubs claiming they are a community benefit and not a licence to print money.

Source

THE cost of running a pokies venue continues to be claimed as a community benefit by AFL clubs.
Pokie clubs operated by AFL teams must use a minimum of 8.3 per cent of their revenue to benefit the community to receive a tax break.
Monash University gambling expert Dr Charles Livingstone said the definition of "community benefit'' was too broad and some clubs claimed football-related expenses.
"How community purposes are defined is so loose that you could drive several thousand trucks through it," Livingstone said.
"It includes things like operating costs, wage bill, electricity, insurance.
"It's very, very easy for clubs (poker machine venues) to claim that 8.33 per cent without actually giving anything to a genuine community group.

The biggest "community benefit" across all clubs was the operating cost of venues, for example $870,000 for rent, wages and running costs at Collingwood's The Coach and Horses in Ringwood.
All four of Carlton's pokie venues claimed the cost of maintaining Visy Park, the Blues' home base, as a community benefit.
Of the nine Victorian clubs with pokies, the Western Bulldogs were the only club to spend any of its community benefit money on the prevention and treatment of problem gambling.

http://www.news.com.au/sport/afl/af...mmunity-benefits/story-fnelctok-1226788385217
More

 

[RussellEbertHandball]

http://www.heraldsun.com.au/sport/a...ker-machine-cash/story-fni5f22o-1226788374023
AFL clubs reject offer to help reduce reliance on poker machine cash
ELIZA SEWELL AND GRANT BAKER HERALD SUN DECEMBER 19, 2013 7:00PM

AFL clubs have ignored an offer to help them get out of poker machines.

Victorian clubs instead are increasing their reliance on pokies cash. It is now 19 months since AFL boss Andrew Demetriou said clubs had shown an interest in selling machines. The league was "prepared to open the batting on being the intermediary for them", Demetriou said.

But the Western Bulldogs are seeking to add 18 machines at their Dromana venue - almost double the current number. Carlton, Collingwood and Richmond have added more machines to clubs in Bulleen, Ringwood, Caroline Springs and Wantirna since Demetriou's statement. Gambling-related revenue from the Victorian AFL clubs' 1466 machines tops $100 million a year.
........
HITTING THE POKIES JACKPOT
AFL club poker machines in Victoria: 1466 Gaming-related revenue: $104 million a year
CARLTON
Gaming-related revenue (GRR): $19.7m Machines: 290
Manningham Club, Bulleen (90 machines) Royal Oak, Richmond (80) Club Laverton, Laverton (60) Vic Inn, Williamstown (60)
COLLINGWOOD
GRR: $22.1m Machines: 186 Coach and Horses, Ringwood (80) The Club, Caroline Springs (66) Diamond Creek Tavern (40)
ESSENDON
GRR: $13.7m Machines:: 190 Essenson Football and Community Club, Essendon (100) Melton Country Club, Melton (90)
GEELONG
GRR: $13.7m Machines:: 180 Geelong Football Club, Geelong (100) The Brook on Sneydes, Point Cook (80)
HAWTHORN
GRR: $18.5m Machines: 155 Vegas at Waverley Gardens, Mulgrave (75) West Waters Hotel, Caroline Springs (80)
MELBOURNE
GRR: $6.9m* Machines:: 180 Bentleigh Club, Bentleigh (80) Leighoak, Oakleigh (90) Unattached machines (8)
NORTH MELBOURNE
No pokies
RICHMOND
GRR: $5.5m Machines: 87 Wantirna Club, Wantirna (87)
ST KILDA
GRR: $750,000* Machines: 83 St Kilda FC Social Club, Moorabbin (83)
WESTERN BULLDOGS
GRR: $4m Machines: 115 Peninsula Club, Dromana (20) Club Leeds, Footscray (25) Unattached machines (70)

Note: Gaming related revenue derived from club financial reports for year ended October 31, 2013, except where indicated. Includes all revenue generated by social club activities. and * 2012 figure
http://www.heraldsun.com.au/sport/afl/afl-clubs-reject-offer-to-help-reduce-reliance-on-poker-machine-cash/story-fni5f22o-1226788374023

and another article and you can see how 4.5 years later how much extra monies have been made by the clubs - except North Melbourne - once the clubs brought extra pokies as per the article quoted in this post after this one and by Caro in the next post.
http://www.theage.com.au/national/afl-clubs-make-killing-on-pokies-20090307-8rym.html
AFL clubs make killing on pokies - Date March 8, 2009
VICTORIAN AFL clubs reaped $245 million from poker machines in the past three financial years and are increasingly targeting Melbourne's most vulnerable communities.

Five suburban venues owned by Collingwood Football Club made $62 million, with about $20 million pouring directly into the Magpies' coffers.

Reigning premiers Hawthorn got about $35 million from pokie players at its Waverley Gardens venue, Vegas, which was the third-most lucrative pokie club in the state. Each machine generated a staggering $157,000 last year.

Richmond's balance sheet was boosted by almost $10 million after pokie players lost about $30 million at its clubs in Wantirna and Richmond.

The Western Bulldogs, Essendon, Carlton and Melbourne each made more than $2 million a year from gaming.

Financially embattled North Melbourne recorded the lowest take of any Victorian club, with pokie players losing $1.3 million over three years at the Arden Street social club, delivering a modest profit of $450,000.

On Friday, the Brumby Government released details of pokies spending at all Victorian gaming venues as part of its plan to strip Tatts and Tabcorp of their duopoly power and allow hotels and clubs to own and operate machines. Charles Livingstone, of Monash University's department of health science, accused AFL clubs of deliberately establishing gaming venues in economically disadvantaged areas. "It's no coincidence that Richmond has a venue in Wantirna, or Melbourne in Oakleigh, or Collingwood in Caroline Springs, or Carlton in Laverton. This is an obvious strategy to maximise the returns from each machine and it seems to have the blessing of the AFL's administration," Dr Livingstone said.

Hawthorn is poised to expand its gaming empire into the western suburbs, with approval for 80 more machines at its proposed $27 million West Waters Hotel development in Caroline Springs.......
http://www.theage.com.au/national/afl-clubs-make-killing-on-pokies-20090307-8rym.html

another article in May 2010

http://www.smh.com.au/federal-polit...d-the-times-on-problem-gambling-20100527-wh7i
AFL behind the times on problem gambling - Matthew Nicholson May 27, 2010
In the past 20 years the Australian Football League and its clubs have attempted to provide leadership on a range of social issues, particularly in the areas of racism, respect for women and the use of illicit drugs. The AFL is regarded as an exemplar in affecting positive social change in the area of racial vilification and racism, both on and off the field, while its illicit drugs policy, albeit controversial, is unique in adopting an educational and non-punitive approach to a complex social problem.
........

The Gaming Machine Entitlement Outcomes announced on May 20 reveal that nine of the 10 Victorian-based AFL clubs have bought gaming (poker) machine licences that will run for 10 years from 2012: in the auction Carlton secured 260 machines; Collingwood 191; Essendon 190; Geelong 182; Western Bulldogs 95; Melbourne 92; St Kilda 83; Hawthorn 75; and Richmond 70. Many of these machines are located in areas of Melbourne and Victoria in which the residents experience significant socio-economic disadvantage.
http://www.smh.com.au/federal-politics/political-opinion/afl-behind-the-times-on-problem-gambling-20100527-wh7i

Caro's article below was 13 days later in post below

 

[RussellEbertHandball]

This article by Caro back in 2010 when the Vic government auctioned off the machines also shows why the club s wont give up the machines. Look at what some clubs were prepared to pay per machine and look at how cheap some clubs got them for. I posted it in another thread re pokies and impact on us in terms of keeping up revenue generation. Will dig around for that thread.

http://www.theage.com.au/afl/afl-news/pokies-deal-sparks-afl-clubs-feud-20100512-uy3z.html
..........
The Blues have gone from having one pokies venue to four, with at least 260 machines secured at the bargain basement price of $5500 each.
...........
The Blues will also take over the Manningham Club in Bulleen (formerly Brisbane Lions) and continue to control machines at its club in Laverton.
The moves should eradicate Carlton's $5 million debt over the next decade
.........
The Bulldogs have finished up with 55 machines, which the club purchased at an average cost of $62,000 each.
..........
Hawthorn was celebrating after the silent auction, having paid the $5500 minimum for some 100 machines for which it had considered bidding as much as $110,000 each.

Melbourne's board allocated $4 million for 92 machines at the Mathieson-owned Leighoak club, but ended up paying just $370,000.

Collingwood, St Kilda and Essendon - like Melbourne - took up the option of buying licences for 40 machines before the auction, paying between $25,000 and $40,000 each, before securing the balance of their machines at auction for just $5500 each.
..........
With the sale of machines to end the Tattersalls-Tabcorp duopoly by 2012, the new 50-50 split between the licence-holders and the government operators is estimated to see machines in Victoria profit to the tune of $470,500 each over the 10-year agreement.
http://www.theage.com.au/afl/afl-news/pokies-deal-sparks-afl-clubs-feud-20100512-uy3z.html

 

[Dobie G]

Studies have shown that pokies do the best in the poorest areas where the most vulnerable are. Some gamblers loose $1,500 an hour and one in 6 people who play the pokies have a serious problem.
From Newcastle Herald 5/10/13