Romsey Football Netball Club’s pokies application refused by VGCCC after fight against council

The Romsey Redbacks plan to reopen a boarded-up small town pub and install pokies to generate mass profits has been squashed in a controversial anti-gambling ruling.

The Romsey Hotel will remain boarded up, with plans to renovate and reopen squandered as a result of a VGCCC ruling against poker machines.

The future of a boarded-up country pub is under a cloud after the local footy club’s bid to use poker machine revenue for club funding failed to impress the anti-gambling council.

Residents of Romsey, 60km north of Melbourne, have long begged business owner James Hogan to reopen the doors of his Romsey Hotel, which has sat shuttered in the town’s centre for seven years.

The VGCCC has refused the Romsey Redbacks to install poker machines at the Romsey Hotel. Picture: Supplied

Knowing locals were desperate for a pint at the pub, the Romsey Football Netball Club in October last year dropped a sensational bid to reopen the Hotel and even operate it itself.

Mr Hogan promised to splash $10m to renovate the pub and lease his property to the Redbacks on one condition – the Victorian Gambling and Casino Control Commission (VGCCC) had to give the green light for 50 poker machines to be installed at the Hotel.

“What is clear from the modelling is that the proposal will not be financially viable if gambling machines are not permitted to operate at the hotel,” Mr Hogan said in a statement to the Commission.

The Romsey Redbacks had hoped to generate hundreds of thousands of dollars for the club with the poker machines. Picture: Yuri Kouzmin

Commissioner Claire Miller heard the application in June and, in a controversial ruling, refused the Redbacks permission to install and operate the poker machines.

Under the arrangement, the Redbacks would have reaped a huge $200,000 in profits plus 30 per cent of any remaining profits given to the footy club – quadruple its current sponsorship income.

Macedon Ranges Shire Council deemed the slot for pokies a “public health issue” likely to cost the community $4.3m over 20 years and opted to fight against the application.

The rejection of the pokies plea came as a relief to CEO of the council Bernie O’Sullivan.

“Council is pleased that the application for electronic gaming machines at (the Romsey Hotel) has been refused … affirming Council’s opposition to the application in consideration of community sentiment and the negative wellbeing impacts,” he said.

“However, Council remains supportive of business investment within our towns such as Romsey and would continue to encourage proposals that demonstrate positive benefits without the need for electronic gaming machines.”

Owner Jim Hogan had grand $10m plans to renovate the Hotel before reopening if pokies were approved for the premises by the VGCCC.

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

It’s not the first time the council had taken a stand against poker machines at the Hotel.

This year’s stoush to many felt a repeat of council’s infamous showdown with Mr Hogan in the 2000s when he first applied for 30 gaming machines at his pub.

The 30 machines were approved in 2007, but then overturned in 2009 when the council appealed the decision to the Supreme Court, arguing resident’s avid detest of pokies should be considered.

Romsey residents protest against poker machines in 2006. Picture: Bill McAuley

Macedon Ranges Shire councillors in 2009 celebrate a VCAT decision against poker machines at the Romsey Hotel.

This time around, the argument wasn’t so clear cut, with residents not only forced to consider the ramifications of pokie machines in town, but also weigh up the longevity of the local footy club and the alleged economic benefits the application could reap.

A Herald Sun survey found 64 per cent of residents were in favour of the application.

Mr Hogan said in its submission to the VGCCC that his grand $10m renovation plans were contingent on the approval of poker machines, leaving the future of the Romsey Hotel unclear.

Mr Hogan opted against providing comment while the reason for the decision remains withheld by the VGCCC.

The president of RFNL has also been contacted for comment.

The VGCCC will soon release its reasons for its decision.