A Tasmanian parliamentary inquiry has decided against recommending a ban on electronic gaming machines (EGMs) in the pubs and clubs, but urged a "significant" reduction in machine numbers.
It has also conceded gambling was "a recreational pastime, even part of 'the Australian way of life'" for many Tasmanians.
The Future Gaming Markets Report found of the gambling industry's $311 million revenue in 2015 to 2016, the Government recovered $96.4 million in taxes, fees, penalties and levies. It also found gaming revenues contribute 1 per cent of state revenue.
The report, released today, recommended significantly reducing poker machine numbers, rather than removing the machines from venues completely.
"The committee was unable to reach a majority decision on the question of whether EGMs (electronic gaming machines) should be removed from hotels and clubs in Tasmania," the report read.
It recommended the Government "revisit" the amount of gaming machines it has already promised to remove, indicating reducing numbers by 150 was insufficient.
The decision comes as recent polling showed 81 per cent of people in Premier Will Hodgman's electorate wanted to see pokies either reduced in number or removed altogether.
The inquiry received about 150 submissions, many of which pointed to negative social implications caused by the machines.
An Anglicare report also found removing poker machines from venues outside casinos could see millions of dollars flow into the state's economy each year and create hundreds of jobs.
Liberal says 'significant' reduction of EGMs will hurt employment
Two committee members filed dissenting reports, Liberal MP Sarah Courtney and Greens MP Andrea Dawkins.
In her dissent, Ms Dawkins said the committee had failed to properly consider the evidence which "overwhelmingly supported removal of EGMs from hotels and clubs in Tasmania".
She made three additional recommendations, including introducing "harm minimisation measures" such as $1 bet limits.
Ms Courtney's dissent rejected a number of the report's recommendations, including that the number of poker machine numbers flagged for removal should be increased.
She said any "significant" reduction "would have devastating economic and employment impacts" on the community.
As well as owning both of Tasmania's two casinos, the family-owned Federal Group has exclusive rights to all of Tasmania's poker machines under a monopoly licence it has held for more than 40 years.
That licence is set to expire in 2023 and the State Government has already vowed to put the licence out to public tender.
The report recommended the company retain its casino licences, but said any future exclusive licences "should not be in perpetuity".
It also said future casinos should be limited to "high-roller non-resident" ventures, with MONA's planned casino development at its Berriedale site standing to benefit from such a move.
Gambling a part of 'Australian way of life'
In his foreword, Mike Gaffney said Tasmania's economic benefit from poker machine revenue fared poorly compared to other jurisdictions and the effects of problem gambling can be "exceptionally damaging".
"The introduction of casinos to Tasmania in the '70s and '80s and electronic gaming machines (EGMs) into hotels and clubs in the '90s was promoted as potentially making a positive financial contribution to a somewhat stagnant Tasmanian economy.
"However, evidence suggests that in today's economy, the contribution of the 'gaming sector' makes far less impact overall to the state revenue, especially in comparison with other jurisdictions."
Mr Gaffney said gambling was "acknowledged by some as a recreational pastime, even part of 'the Australian way of life'".
He said while "it is appreciated that many forms of gambling stimulate economic, employment and business activity in our communities" it "must also be recognised that the impacts of gambling, especially EGMs, for some individuals, family members and the wider community can be exceptionally damaging".
Mr Gaffney said while "considerable evidence … reinforced the notion that because of the harm created by EGMs, the machines should be confined to the casinos and TT Line [Spirit of Tasmania ferry service]".
A recommendation supporting a ban on pokies from hotels and clubs "failed to gain support from the majority" of committee members.
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The committee made 23 recommendations, which it said were "agreed to by majority decision".
Included in the recommendations were Federal Group be allowed to continue operating its existing casinos but that its licences "not be in perpetuity" and the fee reflect the open market value of the licence.
Other recommendations include:
- The Government revisit the number of EGMs (150) which are to be removed from circulation as stated in the Hodgman Liberal Government post-2023 Gaming Structural Framework;
- The Government adopt strategies to facilitate the reduction of a significant number of EGMs from Tasmanian Hotels and Clubs by the 1st of July 2023;
- EGM licences are not issued into perpetuity;
- Funding for targeted community support levy programs should be regularly reviewed, including an evaluation of their effectiveness;
- The Federal Group retain licenses to operate their two existing casinos;
- If the casino licence is to be exclusive it should not be in perpetuity. The annual licence fee should be reassessed and should reflect the value/worth of the licence if it was to be put on the open market;
- Any future casino licences will be limited to high roller non-resident casinos through a market based process;
- The taxation rates on table games in casinos to be comparable with regional casinos in other jurisdictions.
The numbers
Number of EGMs in Tasmania
| Machines | Cap | |
| Number of casino gaming machines | 1,185 | |
| Number of hotel and club gaming machines | 2,375 | 2,500 |
| Total number of gaming machines | 3,560 | 3,680 |
| Gaming machine cap - each hotel | 30 | |
| Gaming machine cap - each club | 40 | |
| Number of gaming machines - Spirit of Tasmania vessels | 36 |
Gaming machine expenditure
| Financial year 2016-17 | |
| Hotel and club | $110.33 million |
| Casino and Spirit of Tasmania vessels | $71.95 million |
| Total | $182.28 million |
Venues with gambling facilities
| Total gambling premises* | 286 |
| Number of premises with gaming machines | 100 |
| Number of premises with keno | 167 |
| Number of premises with UBET | 137 |
| Number of premises with lottery | 95 |
*Some premises may have multiple forms of gaming and wagering available
People excluded from gambling
| As at June 30, 2015 | As at June 30, 2016 | As at June 30, 2017 | As at July 31, 2017 | |
| Self exclusions | 315 | 282 | 297 | 307 |
| Third party exclusions | 1 | 1 | 1 | 1 |
| Venue operator exclusions | 104 | 94 | 88 | 93 |
| Total excluded people | 406 | 368 | 379 | 395 |
*Some individuals may have multiple exclusions, venue operator exclusions may be issued due to behavioural issues
Source: Tasmanian Government
