Council v local footy club: The pokie plea that has split Romsey

Macedon Ranges Shire Council is fighting a “disappointing” application for poker machines at a small-town pub – leaving its residents to choose between protecting the “vulnerable” or the longevity of the local footy club.

The Romsey Football Netball Club wants to re-open and operate the Romsey Hotel but its plan is contingent on the approval of 50 poker machines.

Macedon Ranges Shire Council has declared an application for poker machines at a small-town pub a “public health issue” – leaving its residents to choose between protecting the “vulnerable” or the longevity of the local footy club.

Residents in the town of Romsey, about 60km north of Melbourne, are bitterly divided over the fate of its local pub, The Romsey Hotel, after it was boarded up nearly seven years ago following a stoush over poker machines and declining profits at the venue.

The Romsey Football Netball Club has vowed to reopen the pub – if it gets approval to install the gaming machines.

But councillors unanimously voted at a Wednesday night meeting to oppose the club’s “disappointing” application for 50 poker machines at the hotel, which the club wants to operate to bolster club income.

The council cannot approve or deny the application for poker machines itself, but can submit an impact assessment to the Victorian Gambling and Casino Control Commission, VGCCC, for consideration in its decision at the May hearing.

The Romsey Redbacks hope operating the Romsey Hotel will generate funding for the sporting club. Picture: Aaron Cook

Council’s research found the poker machines would be “detrimental” to overall community wellbeing – despite the funds they promise to provide to the footy club and various community organisations.

“There is likely to be a social and economic cost to the local community as a result of this application of around negative $4.30 million (over 20 years) or a Benefit to Cost Ratio (BCR) of 0.66,” the assessment states.

The VGCCC cannot approve an application that it deems would have a negative impact on the community.

Mayor Annette Death said the council was “very concerned” about the application.

“We know the detriment and the harm that gambling can have in communities,” she said.

“This is a public health issue and it needs and deserves a public health response.”

Cr Geoff Neil deemed the motion “supportive of the Romsey community in their opposition to the application”, with a survey finding the majority of respondents believed gaming machines would have a negative impact on the community.

The motion flagged the beginning of a potentially year-long fight against the footy club – not the first time the council has opted to fight a Romsey Hotel pokies plea.

“I was a councillor when this came before us many years ago and we fought it all the way to the Supreme Courts with a positive outcome for the community,” Cr Rob Guthrie said.

“Having that background, I was personally disappointed to see this raise its head again when so many other sporting facilities, such as my own football team, are getting rid of these machines.

“I’m also disappointed for the Romsey community, that they’ve had to go through all this angst again.”

Romsey Hotel owner James Hogan has grand $10m plans to renovate the venue should pokies be approved for the premises. Picture: Romsey Hotel

The boarded up Romsey Hotel has become an unwanted town landmark.

Under a two-year management deal, the club would lease and operate the pub, and would receive the first $200,000 in profits from the 50 proposed poker machines – quadruple its current income – as well as 30 per cent of any additional profits.

The club currently makes $50,000 a year in annual sponsorships.

Romsey Hotel owner James Hogan, who also owns successful Hogan’s Hotel in nearby Wallan, said the hotel needs about $10m worth of renovation works before it can reopen, but the works wouldn’t be viable with the pokies windfall.

“It is not viable to undertake the works without gaming as any tenant would be unable to pay a rental without revenue from gaming,” he said in his submission to the Victorian Gambling and Casino Control Commission.

It is estimated the 50 machines would generate between $2.8m and $3.5m a year in player losses.

The council has so far spent $92,000 outside of its approved budget on the assessment, survey and legal advice relating to the pokie plea.

The council previously rejected 30 poker machines for the hotel in an infamous showdown with Mr Hogan in the 2000s when he first applied.

The 30 machines were approved in 2007, but then overturned in 2009 when the council appealed the decision to the Supreme Court, arguing resident sentiment against pokies should be considered.

Allegedly not financially viable without the gaming machines, Mr Hogan closed the Hotel doors in 2017.