Jackpot: how footy clubs will pile up pokie millionsRoyce Millar and Jason Dowling
May 14, 2011FOOTBALL'S reliance on gambling revenue is set to soar, with new figures predicting Victorian-based AFL clubs will double their poker machine income from 2012.
The research coincides with the leaking of a report, commissioned by the AFL in 2002, in which experts warned of a gambling explosion and cautioned the league against deals with commercial betting providers. The advice was not followed.
An analysis by The Saturday Age and Monash University shows poker machine income growing fast as a proportion of total club revenue under new poker machine arrangements introduced by the former Brumby government.
Victorian-based AFL clubs took $30 million (net after tax) from pokie revenue in 2009. The combined figure for the clubs is expected to jump by 109 per cent to $63 million after 2012.
But the pokie windfall is not shared evenly, with clubs such as Carlton and Geelong faring well out of the new deal, and battlers North Melbourne and Richmond left in the financial doldrums.
Last year's auction of poker machine licences by the Victorian government sparked a bitter spat, with Western Bulldogs and Richmond especially angry over Carlton moving on their machines courtesy of pokies king and former Carlton director Bruce Mathieson.
But the real losers, says Monash University researcher Charles Livingstone, are punters encouraged to gamble in support of their clubs. ''Lucrative gambling revenue comes at high cost, and in the case of the AFL clubs this cost may in time be borne by the club's most earnest and loyal supporters.''
Dr Livingstone said Victorian AFL clubs seemed to view gambling revenue as a ''magic pudding for money and on-field competitiveness''.
The figures show that Carlton is looking forward to revenue growth of 436 per cent after it boosted its pokie stable by 200 machines at the auction of the state's 27,500 machine licences.
The revenue retained by the Blues after tax will rise to $13.6 million post-2012.
Well-heeled Collingwood, which already relies on pokies for a hefty slice of its $75 million annual revenue, will boost its pokie take by $2.5 million to more than $10 million.
But Richmond can expect a 17 per cent drop and cash-strapped North Melbourne is left with no poker machines and a big hole in its meagre $25.5 million income.
The figures come amid growing debate about the surge in promotion of gambling at AFL stadiums, club websites and on television and radio.
Almost a decade ago, the AFL asked the Australian Institute of Gambling Research to advise on how to ''ensure protection against gambling-related problems''.
In its report, the institute found that football, through ties with footy tipping group Tipstar, was already at risk of ''being perceived primarily as a betting product rather than as a game with intrinsic values and aspirations''.
It urged the AFL to withdraw from its partnership with Tipstar, which ultimately failed and ceased operation several years ago. It said the AFL needed to ensure its ''independence from commercial gambling interests''.
Since then the league has entered into sponsorship and promotion deals with a string of bookmakers, including major deals with Tab Sportsbet and the James Packer-backed Betfair.
AFL chief executive Andrew Demetriou, who was employed at the AFL in another role at the time, said he recalled the report but did not know what became of it. He referred The Saturday Age to football operations manager Adrian Anderson.
But AFL public relations officers intervened and refused an interview with Mr Anderson. Spokesman Nick Johnston said the AFL had already provided the newspaper with extensive comments about gambling matters.
In written answers to questions from The Saturday Age, AFL spokesman Brian Walsh said he could not find a copy of the report and so had ''no idea'' of its contents.
Asked what the AFL policies were on protection of the public from gambling-related harm, Mr Walsh said the league had already expressed concern about the level of sports betting advertisements in stadiums and some broadcasts.
''We have also said that if there is a way of doing that more responsibly or sensitively we will continue to discuss with our broadcast partners and our stadium partners and we will continue to consult with government as well."
Mr Walsh said the key reason for the AFL striking agreements with gambling companies was to secure access to betting records and betting information to ensure that players, coaches and officials did not bet on matches.
Carlton spokesman Ian Coutts confirmed the club would receive more pokie income from 2012 but stressed the money would help in community activities.
''There are two important issues that are often overlooked and one is that revenue assists us fund our community programs,'' he said. ''We also think it [gaming] provides some social venues for our members and supporters.''
Melbourne chief executive Cameron Schwab was less upbeat, acknowledging that football was now walking a ''fine line'' on gambling.
Hawthorn president Jeff Kennett denied the club was dependent on gaming. The Hawks gets about 10 per cent of their annual $40.7 million revenue from gaming, and expect a 66 per cent boost under the new arrangements. ''If we lost it tomorrow, would the club go down the tube? The answer is no,'' he said.
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