A university study has highlighted the fact that millions of Australian dollars from gaming machine operations in Victoria that should be going to community organisations and charities are being claimed as expenses by clubs and pubs. Employee wages, utilities and even Happy Hour outgoings are being credited as being of benefit to the community, as are revamp and extension costs.

Following growing concern from community groups, the Bracks government has now announced that a review will be conducted into the matter. The study reports that less than 3% of the A$376 million (US$313 million) collected by pokie operators for public projects was actually paid out in community benefits. The figures reveal that A$236 million went on wages, around A$50 million on insurance, gas and electricity, and A$53.5 million was spent on fixed assets.

That left just A$9.7 million in the last financial year paid to local community programmes, sporting clubs and charities. Under the state gaming law, gaming clubs must give 8.3% of pokie revenue for community benefit or lose preferential tax status. Pubs that operate the poker machines must contribute 8.3% of revenue to a Community Benefit Fund. Pubs with no gaming machines face unfair competition over subsidised food and drink offered as ‘benefits’ by pokie operators.

The decision to allow the inclusion of operating expenses under community benefits, which could be described as a very charitable gift to pokie operators, was taken in 2003 by the then acting gaming minister. This decision is increasingly being called into question as the commercial operations are now seen as being the major beneficiaries in the community, at the expense of not only the non-profit organisations but also of other businesses. Charity may begin at home but unfair business practices should not be tolerated. (E-04.27.07)

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