Pokies Reform: the Path Forward 3The number of seats won by Liberal or Labor at the 2021 election matters little to the overall future of poker machines in Tasmania. They will operate at least until 2043 in the two casinos, in a multitude of pubs statewide, and in a few clubs.

To ensure genuine harm reduction and prevention within that given framework some simple measures need to be included in the Gaming Legislation that’s sitting in Peter Gutwein’s bottom drawer. Measures that will have no impact on recreational players, the majority who are unaffected by the addictive design of pokies, but will greatly assist those who are being affected and harmed.

The post election composition of the Lower House could include independents as well as Greens, Liberal and Labor. Labor and Liberal support for pokies is clear, with only various implementation details unknown. Any Greens and independents will lean heavily toward strong reforms.

The disposition of the post election Labor caucus which, through the Upper House, can control the passage of legislation, is the key to a future with genuine and effective harm reduction

Divisions within Labor have become glaringly obvious recently but have been rumbling along quietly for some time. Media has rightly focussed on the machinations of the party’s faceless backroom apparatchiks. But the future of pokies doesn’t belong to those faceless ones, it belongs to elected Labor MPs.

When she walked away from the party’s Pokies out of Pubs policy on the Leon Compton radio show in 2018, Bec White guaranteed that she wouldn’t abandon those being hurt by pokies but would focus laser-like on achieving effective harm reduction and prevention, a position she still publicly maintains.

Labor’s MOU with the THA (Tasmanian Labor pledges to ‘support the rights’ of pubs and clubs to operate pokies, three years after pushing ban – ABC News) contains several clauses that surprised sections of the party and are causing great disquiet.

Endorsed Franklin candidate Fabiano Cangelosi has spoken out publicly while other candidates, sitting members, branches, rank and file, party supporters, and even a section of the faceless apparatchiks, are disappointed.

THA CEO Steve Old brandished the leaked MOU for TV, and even more gloatingly on radio to Brian Carlton (Political Party Teams Up With “The Enemy” | BONUS (triplem.com.au), declaring that, had it not been leaked, it would be whipped from his bottom drawer to thrash the party should Labor go in any other other direction.

Old will be well aware that an MOU is not a legally binding document and that any pre-election deal put together under the auspices of party cadres need not bind a newly constituted caucus.

Regardless of any enforcement incapacity, the clause relevant to pokies isn’t clearcut.

“Agreeing to work together on the development of potential, viable harm minimisation for measures for gaming products while also agreeing that any measures need to be workable for industry.”

What do ‘viable’ and ‘workable for industry’ mean? Is it unworkable for industry to accept harm reduction and prevention measures that won’t affect recreational players and will only reduce the play of those 1% of Tasmanians whose harm even Premier Gutwein acknowledges? Will the loss of revenue from that small coterie of harmed players be viable for the pokies barons? These are the questions the Labor MPs must answer.

Another part of the MOU, not relevant to pokies, is also causing internal party concern. “Agree to work together where possible to ensure that hospitality employers in the state are abiding by award conditions and wages for their employees and focus education on those that don’t pay the award (Wage theft) and ensuring employees understand and are committed to their employment.”

Labor’s agreeing to prefer ‘education’ above prosecution for wage theft was leaked twenty four hours before the release of a scathing Fair Work Commission report on rampant underpayment amongst hospitality operations in North Hobart, the Hobart docks, Salamanca Place and Battery Point. The negotiators of this MOU point are not popular.

Peter Gutwein is proud of his pokies reform as, through his Liberal economic prism, he sees breaking the monopoly held by Federal Hotels and the passing of machine ownership to individual hotels, although most are in the hands of just seven chains, as a great success. He appears unable to see beyond this redistribution of the lost money to understand how it’s a meaningless reform for those the industry harms.

Absent from Liberal policy detail is the amount of state tax Federal Hotels will pay for each dollar lost at their casinos. As Treasurer, and again as Premier, Peter Gutwein has made it clear the rate on pub Pokies losses would be 34%, 34 cents from each lost dollar.

It’s initial submission to the Parliamentary Pokies Inquiry Federal Hotels sought a casino Pokies rate of just 10%, ten cents per lost dollar. Realising that Gutwein was resolute on breaking the monopoly Federal Hotels and the THA, on behalf of the pub Pokies Barons, kissed and made up, making a late joint submission to the Inquiry requiring that the casino Pokies rate be 20%.

If the Liberals opt for a 10% tax rate Federal Hotels will benefit, over twenty years, $320 million. If 20% then Federal Hotels will benefit just $180 million!

In March 2016 Peter Gutwein had proudly and loudly announced his intention to put pub Pokies licences to public tender. In March 2017 Federal Hotels’ Greg Farrell noted to the Inquiry that these would be worth a collective $150 million to the state. Separate and independent assessments have valued them at $250 million. The joint Federal Hotels/THA submission in August 2017 sought that the licences instead be given to existing operators at no cost. This became the Liberal’s 2018 election policy.

The declared Liberal harm reduction measures can be simply described. They will park an extra ambulance at the bottom of the pokies addiction cliff but refuse to build any barriers to prevent players joining that 1% of Tasmanians who tumble off the top.

The Greens policy is the strongest of any party. They have a clear view that ameliorating harm comes before any needs of pokies operators or recreational players. They will take whatever action available to achieve harm reduction.

Three independents, each with some prospect of election, have known pokies positions.

In Clark, Glenorchy Mayor Kristie Johnstone has spoken powerfully against the industry. She sees the daily effect it inflicts on her city. Sue Hickey indicates that she will strongly support measures that will be effective, but that will still allow the industry to continue operating. Braddon candidate Craig Garland has spoken of watching his local pubs turn into pokies dens and wants them restored as centres of community activity.

These are some of the simple measures that will be effective in reducing and preventing whilst placing no inhibitions on recreational players.

  • No losses disguised as wins.
  • No false near misses.
  • One dollar maximum bet per spin.
  • Reduce bet speed from once every 3 seconds to 6 seconds
  • Reduce opening hours. (no 8am opening or 3 am closing)
  • Unlinked jackpots
  • Retention of coin operation (no note acceptors)
  • Modernising player exclusion practices

Pat Caplice convened activist group Rein in The Pokies. Growing up and spending his early working life in Glenorchy he noted the effect of pokies post 1997. He closely followed the 2003 extension of the Pokies Deed by Labor. Along with David Walsh and Dr Charles Livingtone, he made extensive in-person and written submissions to the 2017 Parliamentary Pokies Inquiry. He coordinated the 2018 election anti Pokies campaign.

TASMANIAN TIMES: ACT Tries Different Tack on Pokies.