The ACT Government was offered $10 million in the lead-up to this year’s Budget in the form of an upfront fee for Casino Canberra to get poker machines.
The money would have obviated the need for any tax increases. The Government refused the proposal.
The office of Treasurer Ted Quinlan confirmed the approach by the casino, but refused to outline any details.
It is understood that the casino sought 200 poker machines which would have generated about $4.4 million in gaming taxes. It argued that 100 direct jobs would have been created with 90 created by the multiplier effect. At present the casino pays about $4 million a year in gaming taxes and provides about $18 million in wages.
It is understood that Cabinet was split on the proposal, but it ultimately was rejected because the clubs would not like it – particularly the Labor Club which is a substantial donor to the Labor Party. In some years, up to $400,000 has gone from poker machine revenue at the Labor Club to the Labor Party. In some years the club has provided half the ACT party’s revenue.
It is understood that the casino argued in its submission to Mr Quinlan that the casino having poker machines would not affect the local clubs market because its clients were mainly interstate visitors and it operated in a tourist precinct.
When the casino opened in 1992 it was precluded from having poker machines. At that stage neither NSW nor Victoria had a casino.
The casino has argued for poker machines for more than five years offering to pay various start up fees. At one stage it put forwards a plan to get a branch of a local club with poker machines to have seamless, contiguous premises. That, too, failed.
During the Liberal Government, Hotels pleaded with the ACT Government and Assembly members to break the clubs’ monopoly on poker machines, but were defeated by a combination of Labor and anti-gambling independents, the latter asserting a conflict of interest.
There is a legislative cap of 5200 machines in the ACT – all but a few old-style machines are restricted to licensed clubs.The ACT Government was offered $10 million in the lead-up to this year’s Budget in the form of an upfront fee for Casino Canberra to get poker machines.
The money would have obviated the need for any tax increases. The Government refused the proposal.
The office of Treasurer Ted Quinlan confirmed the approach by the casino, but refused to outline any details.
It is understood that the casino sought 200 poker machines which would have generated about $4.4 million in gaming taxes. It argued that 100 direct jobs would have been created with 90 created by the multiplier effect. At present the casino pays about $4 million a year in gaming taxes and provides about $18 million in wages.
It is understood that Cabinet was split on the proposal, but it ultimately was rejected because the clubs would not like it – particularly the Labor Club which is a substantial donor to the Labor Party. In some years, up to $400,000 has gone from poker machine revenue at the Labor Club to the Labor Party. In some years the club has provided half the ACT party’s revenue.
It is understood that the casino argued in its submission to Mr Quinlan that the casino having poker machines would not affect the local clubs market because its clients were mainly interstate visitors and it operated in a tourist precinct.
When the casino opened in 1992 it was precluded from having poker machines. At that stage neither NSW nor Victoria had a casino.
The casino has argued for poker machines for more than five years offering to pay various start up fees. At one stage it put forwards a plan to get a branch of a local club with poker machines to have seamless, contiguous premises. That, too, failed.
During the Liberal Government, Hotels pleaded with the ACT Government and Assembly members to break the clubs’ monopoly on poker machines, but were defeated by a combination of Labor and anti-gambling independents, the latter asserting a conflict of interest.
There is a legislative cap of 5200 machines in the ACT – all but a few old-style machines are restricted to licensed clubs.