Poker machine profits in the Clarence Valley revealed

New data released by the Office of Liquor and Gaming has revealed the profit pokie machines made towards the end of last year, and the impact COVID restrictions had on gambling losses

Poker machines in the Clarence Valley raked in more than $17 million profit to finish 2020, with new data released by the NSW Government revealing hotels and club turned over $1 million more compared to the end of 2019.

Figures released by the Office of Liquor and Gaming show pubs and clubs in the Clarence Valley local government area made a net profit of $17,619,058 from pokies in the six months up until the end of 2020, compared to a net profit of $16,632,942 over the same time period in 2019.

The previous six-month net profit figures were significantly impacted by restrictions placed on gaming venues due to the COVID-19 Public Health Orders including the closure of gaming venues for 10 weeks from March 23 to May 31, with poker machines in the Clarence notching up a profit of around $9.9 million.

Figures from December 2020 to February 2021 show that pokies in the 11 clubs in the Clarence have generated $5,607,833 in profit in just three months.

Net profit is the combined profit from gaming machines for all venues within an LGA and is the closest indicator of how much money the community has lost.

While the hotel industry’s combined net profit was 35 per cent less than clubs, they paid more tax.

As of December 29 hotels in the Clarence Valley made $5,931,919 from 214 electronic gaming machines, and paid $1,375208 in tax to the state government and clubs paid $1,733,306 tax while making a combined net profit of $11,687,139 from 477 machines.

Under NSW taxation arrangements, a hotel earning from $450,000 up to $1.25 million from pokies pay a 36 per cent rate, whereas clubs would pay 18.05 per cent tax. When profits rise to more than $1.25 million, hotels are hit with a 50 per cent tax bill, while clubs could pay a little as 22.55 per cent.

No tax is paid for clubs with profits under $250,000 and hotels under $50,000.

The Grafton District Services Club’s 128 machines ranks 126 by gaming machine net profit in NSW clubs, the most profitable of the Clarence Valley’s club, while the Clocktower Hotel has the Clarence Valley’s most profitable machines out of the local government area’s hotel, coming in at number 561 out of the state’s hotels.

The new data has revealed that Coffs Harbour’s C.ex Club is the second most profitable club between Hawks Nest and the Queensland border, behind only Twin Towns Services Club in the Tweed Shire and moved up several spots in the state rankings which compare gaming machine profits to sits at number 46 in the state.

Twin Towns’ 586 gaming machines is more than double C.ex’s 248.

Compared to the same six-month period in 2019 the total number of operating gaming machines fell by 2374 across NSW while net profit increased by 10.93 per cent for hotels and 7.29 per cent for clubs and total net profit increased by 8.79 per cent.