Pokie levies loss hits RSL Victoria head office’s bottom line hard
RSL Victoria’s chief executive has warned it was heading “on a possible path to insolvency” because of disappearing pokies cash this year. Here’s how the league is tackling its COVID-driven financial crisis.
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RSL Victoria is “on a possible path to insolvency” because of a coronavirus-driven decline in income from pokies, its chief executive has warned.
About $500,000 has been slashed from the head office’s operating budget since March because poker machine levies it takes from clubs dried up when venues were forced to shut their doors.
This has come at a time when RSL clubs would expect to be busy as veterans marked this week’s 75th anniversary of the end of World War II. Four staff have been made redundant, workers have been put on reduced hours, and discretionary and operational costs have been cut at Anzac House.
In a further blow, head office has been criticised by some RSL clubs over its handling of the COVID-19 pandemic.
Eight large RSL venues have formed the Foundation RSL Group after being hit by pokies and hospitality losses.
In a damning letter to RSL Victoria chief executive Jamie Twidale, the group:
SAID the “arrogance” from the state HQ was causing “angst and anger”;
SLAMMED head office’s lack of veteran welfare support during the pandemic. Instead, branches had run support services from their carparks;
CALLED the handling of the sell-off of the RSL Vasey aged-care network “deplorable’’.
The subbranches are seeking access to a $4 million Future Assistance Fund, a rainy-day cash reserve which clubs had built up since 2010.
“The continued sweeping of our accounts, including FAF commitments, is completely untenable,’’ the group said.
Mr Twidale said money was being used for two purposes including preparing for changes to gaming processes in 2022.
“The second purpose that it was set up for was to support any of those sub branches who found themselves in financial distress,’’ he said.
Mr Twidale said up to $1m had been made available for welfare support during the coronavirus.
He stressed that funds raised through veteran welfare appeals such as Anzac Day and Poppy Day were “ring-fenced” and were safe.
Clubs kick in about $5m a year to Anzac House through a pokies levy of 50c a day for each machine but that ended on March 22.
Minutes from the RSL state executive meeting revealed the parlous state of the books and tensions between management and the board.
RSL elections have been deferred by five months to December because management and board members said it could not manage the annual meeting by video conference.
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