State Budget, pubs and clubs hammered by pokie shutdown as industry urges they be allowed to return
Poker machines have shut down, wiping millions from the State Budget and the bottom lines of pubs and clubs. The industry has proposed COVID-safe changes to fast-track a restart.
SA News
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Poker machine shutdowns are set to wipe $40 million from the State Budget bottom line, as pubs and clubs urge a rapid lifting of restrictions.
Figures from the State Government’s Consumer and Business Services agency show both tax returns and venue takings from the machines tanked from late March.
The lockdowns cost the state’s pubs and clubs about $1 million every day they remain in place.
Currently, the reopening of gaming is to be considered in phase three of restrictions easing early next month.
However, industry claims lost revenue is making it harder to get back on their feet and are offering to install shields, or close every second poker machine to ensure safety.
Clubs SA says the impact of lost revenue has already been “massive”, leaving it less money for equipment as matches resume.
In February, before lockdowns came into force, South Australians spun $54 million through the state’s poker machines. That dropped to $37 million in March, and playing them has been prohibited ever since.
Venues keep 60 per cent of the revenue, and the rest goes to the government in taxes.
Premier Steven Marshall on Monday said the ability to have up to 80 people in a venue was a massive win, and he was planning the next steps.
He said SA was on a fast track to a “COVID-safe economy” when compared with other states.
“Like every other sector, we are looking at the risk mitigation strategies (with gaming) and we have proven ourselves to be flexible in the past,” Mr Marshall said.
“We’ve got to get the balance right.
“We will look to ease restrictions as quickly as we can, but we do not want to go backwards.”
Australian Hotels Association SA chief executive Ian Horne said getting as many jobs back on line required quickly returning all operations in a pub back to as normal as possible.
He said protective screens, or turning every second machine off could enforce social distancing.
“The gaming component is integral to the viability and profitability of a vast majority of licensed hotels, pubs and clubs,” Mr Horne said.
NSW went live with gaming machines on Monday, the first state to do so.
Clubs SA chief executive Mike Penfold said many community organisations were unable to open even under the newly relaxed restrictions.
“They are not-for-profits, they return that money back to the community,” he said. “These guys need to have gaming open … to help pay the bills.”
It is understood there are concerns within Government about fast-tracking the opening of gaming, fearing it could be seen as a cash grab.
SA Best MP Connie Bonaros said problem gamblers had told her the enforced cold turkey period had been “the best thing to ever happen to them”.
Opposition treasury spokesman Stephen Mullighan said jobs should be the only consideration in the reopening of poker machines, not the hit to the State Budget.