Andrews government forces RSLs to pay licence fees for poker machines they can’t install

The Andrews government has been slammed for forcing RSLs to pay hefty fees for pokies they can’t use in a move that charities say is depriving struggling Diggers.

The Andrews government is forcing Victorian RSLs to fork out for expensive pokies licences despite the charities not being able to install the gambling machines.

It comes just months after Premier Daniel Andrews alleged he was open to reform to tackle the “wicked problem” of gambling addiction.

The decision has been slammed as “appalling” by critics, who have accused the Premier of hypocrisy.

Among those worst affected by the issue is Glenroy RSL in one of Labor’s suburban heartlands.

Glenroy RSL is stuck paying expensive poker machine licences. Picture: David Crosling

In 2015, the RSL applied to add 10 machines to the 40 it already owns, below the state average, but three years later lost a long-running Supreme Court battle with Merri-Bek Council over this move and cannot legally add them to the venue.

During this time, the state government required operators to sign up to a decades-long licence deal, kicking off from 2022, and the RSL had no choice but to register licences for 50 machines it expected to operate.

It has since been hounded to hand over the money for these 10 pokies licences even though they cannot install machines.

“We are a welfare organisation, that complies with the rules of the Australian Charities and Non-for-Profits Commission and through no fault of our own this problem will cost us an extra $470,000 for entitlements we can’t even use,” Glenroy RSL president Ken White said.

“We are a small community RSL. Almost half-a-million dollars is a big hit to us and will mean that we will be unable to spend more on veterans support and will make it harder for us to continue to provide significant financial support to local community organisations and schools as we have done in the past.”

The government is under scrutiny for forcing RSLs to pay for machines they can’t install.

“I’m asking the government to have a heart and make the right decision.”

Glenroy is one of multiple RSLs who have sought to renegotiate their entitlements with the state government.

Correspondence seen by the Herald Sun shows that sub-branches Altona, Darebin and Pascoe Vale are all dealing with similar pressures.

It is estimated the total value of licences these venues are looking to offload is in the range of $2m.

Many of them were hit hard by the economic impact of Covid restrictions and play a vital role in their communities.

But the RSLs have been rebuffed at every opportunity and this year were sent letters to “use it or lost it” over licences for machines they either cannot legally install or do not want.

Tim Costello has slammed Victorian Premier Daniel Andrews. Picture: Keryn Stevens

Anti-gambling campaigner Tim Costello said Labor, the Premier and his government had a “massive gambling problem”.

“When clubs are trying to do the right thing by their community, for the Andrews government to stand in their way is appalling,” he said.

“They should be applauded for trying to get rid of them, not obstructed

“Most of the pokies are in Labor electorates, the poorest postcodes, and when someone seeks to do the right thing by their community they are knocked back.”

It is understood there is support among Labor MPs to allow the clubs to forfeit their licences for minimal cost.

But efforts to reach a compromise have been stonewalled by senior government figures and it is feared the state won’t back down because it cannot afford to lose revenue, or set a precedent for further releases, during a budget emergency.

The Herald Sun has previously revealed St Kilda Football Club’s home base at Moorabbin wants to get out of pokies entirely but has also been denied requests to surrender its entitlements without financial pain.

In the last financial year, Victorians lost $2.237bn on pokies and the state forecasts at least $1.2bn from the machines each year.

Critics accused Mr Andrews of being addicted to gambling revenue. Picture: Nicki Connolly

Advocates had hoped Victoria was moving towards gambling reform after Mr Andrews flagged earlier this year that it was open to changes such as cashless cards.

“For those for whom there is a real problem, a wicked problem, we have to support them, and we always have, and that’s why it’s highly regulated and that’s why we have made many changes,” he said in February.

Northern Metro Liberal MP Evan Mulholland, who covers the upper house region Glenroy sits in, said the Premier and his government had an “addiction to gambling revenue at the expense of veterans and their communities”.

“Daniel Andrews wants to front the media and provide virtuous comments … but behind closed doors he’s shaking down small community RSLs for hundreds of thousands of dollars for pokies they can’t even use and no longer want.”

“The government ought to reverse this stubborn decision.”

A state government spokesman said venues in financial hardship could apply to defer payments.

“We’re working with the Victorian Gambling and Casino Control Commission and local councils to monitor the sector with respect to the operation of entitlements.”

In a statement, RSL Victoria said:

“The RSL in Victoria is in constructive conversation with the Victorian Government.”