Brimbank pokies clubs were among the poorest in the state for returning profits to the community last financial year.
A Victorian Commission for Gambling and Liquor Regulation report on community benefit figures shows 14 per cent of revenue collected at six Brimbank clubs was funnelled back into local ventures. This fell short of other north-west councils: Whittlesea (28.5 per cent), Wyndham (28.1), Melton (29.3) and Maribyrnong (21.1).
Despite the clubs collecting $30million during 2014-15, just $4.5 million went back to the community, ranking Brimbank sixth- lowest in the state for percentage returns.
Clubs operating pokies pay a reduced rate of tax compared to hotels as long as they show that a minimum 8.33 per cent of poker machine revenue is spent on approved community benefits.
These include housing assistance for the disadvantaged, poverty relief, education and services for the prevention and treatment of problem gambling and drug and alcohol addiction.
But Monash University gambling researcher Charles Livingstone dubbed it an “outrage” that clubs were actually claiming hundreds of thousands of dollars for activities that had little community benefit.
‘Rules need to be tightened’
“It’s deeply concerning,” Dr Livingstone said. “The rules need to be tightened and these loopholes closed. Most people would think an 8.33 per cent rate would be reasonable if it actually consisted of donations to genuine local charities or organisations, or to benefit kids through sport or scholarships.”
The state government is reviewing the poker machine industry, including requirements for community benefit claims.
Deer Park Club was the region’s most generous on paper, with $1.3 million given out to community ventures.
Three other clubs claimed a total of $888,373 on wages as community benefits. Brimbank clubs also claimed $82,921 on security, $66,752 and $53,559 on rent, $51,380 on electricity and gas, $40,248 on cleaning, $303,219 on labour, $38,122 on security, $13,633 on bar expenses, $10,436 on catering, $11,140 on “entertainers” and $7200 on morning teas.
Council community wellbeing director Kath Brackett said “only a very small proportion” of pokies’ revenue went on activities that genuinely benefited communities under the current system.
“And even less [goes] to activities to reduce the harm from problem gambling,” she said. “Clubs with gaming facilities are able to claim funds for ‘community purposes’. While this implies there is a direct community benefit, this is misleading because ‘community purposes’ can include venue operating costs.”
