Critics of the state's proposed gaming legislation say new changes do not address the social impact gambling has on the community, and that more must be done to address the harm caused.
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The proposed legislation would see an end to the monopoly on electronic gaming machines held by the Federal Group, and allow venues to independently operate gaming licences.
The new legislation would also see an increase in the community tax levy from 8 per cent to 12 per cent across all venues.
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TasCOSS chief executive Adrienne Picone said how the levy will benefit the community is unclear and more clarity is required.
"We need greater transparency about what these rates, levies and taxes mean, and ultimately who benefits from the revenue," she said.
Ms Picone also questioned why the community support levy was higher for clubs and pubs at 4 and 5 per cent respectively, compared to the 3 per cent imposed on casinos.
She said EGM's in hotels and clubs were concentrated in lower socio-economic areas and it was these communities that will suffer the most harm.
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Nelson independent MLC Meg Webb was also critical of the proposal and said changes did not address the issues EGMs have on the community.
'What we know is that poker machines are a product that is designed to be addictive, and at least one in six people that use them on a regular basis will become addicted to them," she said.
"That's a process that then causes great harm in that person's life because it tends to deplete all their financial resources, it impacts on their relationships, on their employment, on their health, their mental well being and can ultimately affect their life very substantially."
"It not only affects them it affects the people around them.
"Research tells us that for every person who's got a problem gambling on poker machines there are five to 10 people around them who are also suffering a negative impact from that."
Ms Picone said when the legislation is tabled in Parliament later this year appropriate safeguards must be put in place to protect at-risk and problem gamblers.
"TasCOSS and the community services industry reiterate calls to make poker machines safer through a range of initiatives, including $1 bet limits, slower spin speeds, removing losses-disguised-as-wins and smaller jackpots," she said.
A Labor spokesman said it was still reviewing the document and would respond accordingly.
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