Pokies overhaul set to net Victorian Government millions of dollars more in revenue

THE Victorian government is set to pocket millions of dollars more from poker machine revenue under a proposed gaming tax overhaul.

THE State Government is set to pocket millions of dollars more from poker machine revenue under a proposed gaming tax overhaul.

Gaming and Liquor Regulation Minister Marlene Kairouz today unveiled the new tax regimen, which will include increased costs for pubs, clubs and hotels with high-earning gaming machines.

The amount of extra money to be nabbed under the changes remains unclear, however sources told the Herald Sun it was a considerable sum.

Gaming and Liquor Regulation Minister Marlene Kairouz. Picture: Elle Smith

From August, 2022 each machine earning between $6,667 and $12,500 a month will now be taxed and clubs with more lucrative poker machines will pay a higher tax.

The Andrews Government claim the increased revenue will be funnelled into hospitals, mental health and alcohol and drug services.

However, anti-gambling groups fear it is a money grab that will not reduce gambling harm.

Alliance for Gambling Reform spokesman Kelvin Thomson said the changes should be made to stop gambling harm and “not to increase revenue”.

“There is a case for higher tax rates but what we are not seeing is action to reduce gambling harm and reduce losses,’’ he said

“It is a recipe for the continuance of $2.6 billion lost every year on poker machines in Victoria.”

Mr Thomson said the government needed “complete transparency” to show where the money was going.

Anti-pokie campaigner Reverend Tim Costello urged clubs to dump the “addictive poker machines”.

“In principle I agree but if the government thinks they can do this and sweep it under the carpet ... it needs to realise we won’t accept it.”

“The community is sick of the number of pokies in the poorest areas.”

The Victorian Greens has warned the government is “addicted” to poker machine revenue.

Ms Kairouz said the new taxes provided a more progressive funding arrangement.

“We’re ensuring venues that earn the most from pokies pay the most back to the Victorian community,’’ she said.

“The price and tax rates that we have announced are fairer — and will secure important funding for health and community projects across Victoria.”

“Our pubs, clubs and hotels employ thousands of Victorians. Today’s announcement will give them the certainty they need to plan and invest in the future of their local communities.”

In the May Budget the Andrews Government predicted $1.12 billion in poker machine taxes this financial year, rising to $1.168 billion in 2021-22.

The latest figures on Victorian’s gambling habits, released by the Victorian Commission for Gambling and Liquor Regulation, showed overall pokie losses had dropped to $2.61 billion last financial year in Victoria as part of a five-year trend.

In June, the Andrews Government — in announcing pokie machine reform — said it had put a freeze on the current state cap of 27,372 machines and 105 per venue until 2042.

However, they also doubled entitlements to 20 years and club venue operators had their maximum ­machine caps increased from 420 to 840.

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