$3 billion hit to pubs in pokie reforms

MORE than 60 per cent of Australian poker machines would have to be replaced if a controversial push to implement $1 maximum bets were introduced.

The hospitality industry would face a bill of up to $3 billion just to implement the policy.

MORE than 60 per cent of Australian poker machines would have to be replaced if a controversial push to implement $1 maximum bets were introduced.

Modelling by the Gaming Technologies Association has found 64 per cent of machines in pubs and clubs would be too outdated to accept the new software needed to limit bets on machines.

Senator Nick Xenophon and Hobart MP Andrew Wilkie used their new power in parliament to reignite a push for losses on poker ­machines to be limited to $120 an hour and all bets to be capped at $1.

The association said all machines more than five years old would need to be replaced at a cost of $25,000 per machine.

Independent Senator Nick Xenophon

Modelling also predicts it would cost $5000-$9000 to upgrade each of the 34 per cent of newer machines, depending on their age.

That would leave the hospitality industry with a bill of up to $3 billion just to implement the policy.

Mr Wilkie yesterday labelled the figures as “simply ridiculous” before conceding that even if the figures were correct, a $3 billion price tag was better than the $5 billion in gambling losses each year

“The poker machine industry has made an art form of absurd claims, so this latest one is hardly surprising,” he said.

GTA chief Ross Ferrar said the laws would likely force the closure of smaller facilities that operate older machines.

“Where a machine is older than five years it has to be replaced. It can’t be upgraded to accommodate the changes,’’ he said. “Frankly, a lot of venues wouldn’t be able to afford to complete the task.”

Mr Ferrar said Australia had among the strictest poker machine laws in the world and further regulation would cost jobs. “We’ve got the slowest poker machines and the lowest maximum bets,’’ he said.