Taxation rates at casinos would need to change if a proposal for Federal Group to transfer its ownership of poker machines was to go ahead, a Parliamentary inquiry heard.
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Federal Group has had a monopoly on the state’s poker machines since 1973, but with this set to expire in 2023, a Parliamentary committee is investigating the future of the gaming market.
A proposed agreement between Federal Group and the Tasmanian Hospitality Association, revealed on Friday, called for hotels and clubs to be individually licensed for poker machines.
Federal Group managing director Greg Farrell said the agreement would increase the returns to venues.
“There is a transition of a significant part of the value of Network Gaming to the licensed hotels and clubs, and in some respects Network Gaming’s revenue, which is some $30 million, would dissipate,” Mr Farrell said.
“About $15 million of that would be recovered by Federal Group by way of two means, one would be through the reduction of the tax rates at the casinos and the other would be through its share of the network revenue through Network Gaming.
“Which still leaves though a substantial reduction in the Federal Group’s revenues, which we would need to ensure over the next six years that we’re managing businesses appropriately to be able to absorb that.”
But Greens leader Cassy O’Connor said the plan would continue to cause social harm.
“We have a once in a generation opportunity to save lives,” Ms O’Connor said.
“Tasmania should be poker machine free but the first step should be removing them from pubs and clubs.”
THA general manager Steve Old told the committee his main aim was to secure a better deal for venues.
“This would deliver a significant increase for each and every gaming venue in Tasmania, allowing them to make greater investments, employ more Tasmanians, and deliver new and better services,” Mr Old said.
“The proposal we’re putting out is getting rid of the middle player … it’s putting it back to venue ownership.”
Premier Will Hodgman said there would be no deals struck before the election.
“Any agreements struck between any organisations are a matter for them and the government has had no part in that,” Mr Hodgman said.
“These are proposals that have been put forward by private sector organisations, it doesn’t reflect government policy.”