Collingwood exit gaming industry after agreeing to sell poker machines to Melbourne Racing Club

COLLINGWOOD is the latest club to quit its pokies operations and exit the gaming industry after agreeing to sell its two gaming venues to the Melbourne Racing Club.

Collingwood president Eddie McGuire. Picture: Getty

COLLINGWOOD has become the latest AFL club to pull the pin on its pokies operations, agreeing to sell its lucrative machines to the Melbourne Racing Club.

The Magpies will offload their two gaming venues — The Club in Caroline Springs and The Coach and Horses in Ringwood — along with their 156 machines which brought in more than $7 million in the six months to December last year.

It is part of what the club calls “a complete and immediate exit from the gaming industry” as part of a strategic repositioning of the Collingwood Football Club following a complete review of the club’s operations late last year.

BOLD CALL: MELBOURNE SEVER TIES WITH POKER MACHINES

POKIES: AFL CLUBS WIN AS GAMBLERS LOSE BIG

GAMING: HAWTHORN URGED TO WITHDRAW FROM GAMING INDUSTRY

President Eddie McGuire called the sale — which will be finalised in October after all the regulatory approvals have been obtained — “a prudent commercial decision, one that will strengthen the Collingwood balance sheet significantly.”

“The forensic review of the entire Collingwood operation last year, and the ‘Forever’ blueprint which came out of it, gave us greater clarity and a renewed sense of purpose but also identified numerous opportunities.

Collingwood president Eddie McGuire. Picture: Getty

“The decision of the board to sell our gaming operation and some of our hospitality interests will allow us to intensify the focus on our core responsibilities — Collingwood fans, elite sporting performance and community — but also enable us to pursue new and different possibilities for growth.

“Collingwood is in a strong financial position, with net assets of $32 million, and with the continuing support of its members will be in an even stronger position with this sale. It is the right time for Collingwood to be making this move.”

It’s a move that will delight the AFL, and in particular chairman Richard Goyder, who has made it clear to AFL clubs he would prefer them to focus on alternate ways to boost their revenue.

It follows on from Melbourne, which has committed to selling its poker machines by 2022, while Geelong are also looking at exiting from their operations.

In contrast, Essendon are in the midst of trying to renegotiate its lease with the City of Melton at the Melton Country Club beyond 2022.

Collingwood has made many millions of dollars from their gaming streams, with their $12.2 million from their operations in 2016-17 making them third in the AFL behind Hawthorn ($23.3 million) and Carlton ($17.6 million).

The Magpies will still operate its Glasshouse function and events business at the Holden Centre, though there is no gaming operation at the Glasshouse.

The club has also ceased operations of its Magpie Millions lottery at the start of this financial year.