THE Goulburn Workers Club has not ruled out installing more poker machines in the future despite fears about looming mandatory pre-commitment.
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The club is also embarking on a $3 million refurbishment, which CEO Brett Gorham says will better position it for possible cuts to gaming revenue.
The Workers registered a $304,894 profit in 2010/11, down from $406,696 last year, according to the annual report. Poker machines pulled in nearly $6.5m, an increase of $270,703 on the previous year.
Total profit from gaming was just over $4m. Out of this, the club contributed $314,884, or seven per cent, to the Community Development and Support Expenditure (CDSE) for community projects and initiatives.
Despite pokies being a lucrative earner, Mr Gorham has used the report to sound a warning about Independent MP Andrew Wilkie’s mandatory pre-commitment push.
The legislation would require players to nominate amounts they’re prepared to lose upfront.
“An independent gaming authority report found the cost of implementing pre-commitment on machines could be approximately $12,300 per machine,” Mr Gorham wrote.
“That would cost your club in excess of $1.5m, which is completely unsustainable. Your club will continue to support the many forms of harm minimisation and problem gambling services available within the community, which have seen the problem gambling rate halve since 2006.
“However, we do not and will not support mandatory pre-commitment. It’s unproven and simply un-Australian.”
Mr Gorham has followed the ClubsNSW line in criticising Mr Wilkie’s demands. He tells the Post there’s “absolutely no doubt” it will impact on profits and clubs and pubs will close as a result.
But in the past year the Workers has added eight poker machines, taking the total to 130. On average, its 10,000 odd members have contributed $400 each to gaming profit. In the mid to distant future, he hasn’t ruled out adding more, but it would depend on the “true cost” of mandatory pre-commitment technology.
Asked whether the club felt a social responsibility given Goulburn’s low socio-economic profile, Mr Gorham said the club contributed above the required CDSE amount and allocated $395,000 to community donations and sponsorship.
“We need to make a profit to continue to benefit the community through club facilities but we also have money going back to it through sponsorships,” Mr Gorham said.
He also insists people are not visiting the club because it’s a gaming venue, but due its food and beverage tradition.
The CEO was pleased with the annual profit, attributing it to increased patronage over four months last year when several local venues closed.
This had helped increase bar revenue by three per cent to $3,071,537. While happy with the result, and wary of increased costs with new pokie laws, the club will undertake a $3m revamp over the next year. Refurbishment of the outdoor gaming area is almost complete but plans are afoot to relocate the front bar to the northern wall, opening up the area.
New décor, coffee shop, updated dining area and extension of the McKell bar’s outdoor area are also on the agenda. Mr Gorham said while it seemed like a contradiction to be forking out money while fearing revenue loss with the pokie reforms, the changes were about the future.
“We need to be ahead of this (pre-commitment) so we’re not reliant on gaming and we’re expanding our income streams,” he said.
“We’re improving our food and dining areas so we can increase patronage. If we’re solely reliant on gaming when this comes in, clubs will go, there’s no doubt.”
As part of this move, the club taking over bistro catering, ending current operator Izabella’s contract, which they’ve had for five years.
Mr Gorham said the change, which would occur in the next month, was about giving the club more control over catering and bringing all staff under the one banner. The AGM will be held at 10.30am this Sunday, October 30 at the club.