The Queensland government is preparing to scrap a poker machine regional quota system intended to keep pokies from clustering in the state’s southeast.
As part of a “red tape reduction” drive, the government will also boost the maximum number of poker machines allowed in Queensland clubs from 280 to 300.
The maximum number of gambling machines allowed in the state’s clubs will remained capped at 24,705 – with pubs’ numbers capped at 19,310 - and applications by clubs for additional machines will still need to be approved by the state’s commissioner for liquor and gaming.
Also scrapped will be a “near rule” that only permitted clubs to purchase new premises close to their existing facility. The move will allow club conglomerates to expand into new areas and purchase smaller, struggling clubs.
The regional quota system was introduced in 2009 to ensure the pokies “do not gravitate to the south-east region, creating an increase in the number of gaming machines per capita in that region”, according to a government discussion paper.
There are more than 27,000 pokies operating in pubs and clubs in the heavily populated south-east, compared with more than 13,000 in the coastal region, and around 3,500 in the western region. Currently, clubs can trade machines within these regions, but not across them.
Logan, which is between Brisbane and the Gold Coast, is home to the state’s most profitable poker machines. Last July, machines in Logan paid out $12.5m in “metered wins”, considered the best measure of how much players are spending. The next biggest-spending area was Townsville, where the pokies paid out $8.4m.
The number of poker machines in Logan has increased from 1,300 in 2009 to 2,189 in February this year.
“Removing this geographical restriction will allow clubs to trade their entitlements with any licensed club within Queensland according to supply and demand,” the Queensland attorney-general, Jarryd Bleijie, said.
The discussion paper says mining in Queensland’s coastal region has increased demand for poker machines in the area, with 70 clubs in the region seeking new machines. However, it notes that 55 clubs in the south-east region were also demanding additional pokies.
The Productivity Commission estimates that more than 40% of revenue drawn from pokies comes from problem gamblers.
Last year was a bumper one for the pokies in Queensland, with record monthly amounts lost in Brisbane, Gold Coast and Toowoomba, according to the state’s department for liquor and gaming.
In December, the Newman government allowed poker machines to accept $100 and $50 notes, up from the previous $20-note limit.
The government also last year permitted Queensland clubs and hotels to use “ticket-out, ticket-in” technology, an alternative to cash. According to gambling machine manufacturer, IGT, this feature decreases the amount of cash actually handed to players, “resulting in longer periods of gaming machine operation”.
The reforms come after the cash-strapped state imposed an additional tax on the gambling industry in its September 2012 budget, which was expected to net the government an extra $16.5m each year.
“In response, representatives of the industry have requested certain concessions to ensure the increased taxation is revenue-neutral to gaming venues,” the government noted in its discussion paper on the changes.
The bill has been referred to a parliamentary committee, due to report back on 13 May.
The state is also currently accepting bids for three new casino licenses.
