Football's $110 million gaming jackpot
Cameron Houston | March 3, 2008
Map: http://www.realfooty.com.au/ffximage/2008/03/02/svPOKIES_wideweb__470x458,0.jpgVICTORIAN AFL clubs gouged more than $110 million from poker machine players last financial year and are increasingly targeting Melbourne's most vulnerable communities.
Monash University research also reveals massive rorting by clubs of their community benefit obligations, with several claiming player payments and "team maintenance" expenses in return for preferential tax treatment.
Victorian clubs retained in revenue one-third of all losses, or some $36 million, from 1191 poker machines in 18 gaming venues.
Collingwood Football Club comfortably topped the list of Victorian clubs, with pokie players losing an estimated $27.7 million at its five clubs and pubs, of which about $8.6 million was retained as revenue in 2006-07.
Venues operated by Richmond, Western Bulldogs, Carlton, Essendon and Geelong recorded pokie losses of more than $9 million and each received estimated revenue of more than $3 million.Financially embattled North Melbourne recorded the lowest losses at its Arden Street social club, which were estimated at $3.7 million, with a modest return to the club of $1.2 million. That figure is likely to be significantly lower, however, as North Melbourne claimed a community benefit of just $64,684, which equates to revenue of less than $776,000.
Charles Livingstone, of Monash University's department of health science, used data from the Victorian Commission for Gambling Regulation and community benefit statements from the clubs to calculate their growing stake in the $2.54 billion lost on Victorian pokies last financial year.
Mr Livingstone said his estimates were "relatively conservative" and actual gaming losses at club-owned venues could exceed $150 million.
Collingwood chief executive Gary Pert said the Monash University report had substantially overstated the club's gaming revenue.
"Those figures are far in excess of what is the reality," Mr Pert said.
Mr Livingstone said only five venues still operated at the clubs' traditional home grounds.
Eight venues are located in lower-income suburbs including Laverton, Footscray and Caroline Springs, which all suffer from higher rates of problem gambling.
"It appears likely that Victorian AFL clubs will become increasingly reliant on gaming revenue," Mr Livingstone said.
"In many cases, AFL club-operated venues are located in areas of comparative socio-economic disadvantage and appear to offer only very modest returns in the form of claimed community benefits."
Under state tax rules, all gaming clubs must prove they spend at least 8.3 per cent of their poker machine revenue to benefit the community or risk losing preferential tax treatment.
Last financial year, Victorian club-operated venues claimed more than $13.5 million expenditure as a community benefit. But 94% of claimed community benefits included the venue's wages, fixed assets and expenses such as gas and electricity.
Just $462,000 or 3.4% was spent by Victorian-based clubs on charities and philanthropic organisations.
Collingwood's Caroline Springs venue, The Club, claimed a computer, photocopier and kitchen upgrade as a public benefit, while the Western Bulldogs claimed exercise bikes, gym equipment and legal costs.
And several clubs have claimed football expenses as a community benefit.
Last year's premiers, Geelong, claimed $123,190 for "maintaining football club", the Western Bulldogs justified a $43,122 payment on "football" as a community benefit, while St Kilda claimed a staggering $478,139 on "team maintenance" in return for tax exemptions.
The number of pokies operated by Victorian clubs is set to soar, with Hawthorn, Western Bulldogs, Geelong and St Kilda expected to apply for new machines this year. Maribyrnong residents have slammed a plan by the Western Bulldogs to build a $25 million club in the Edgewater estate with 65 pokies.
Despite its commitment to the south-eastern growth corridor, Hawthorn received planning approval last week for 80 more machines at its proposed $27 million West Waters Hotel development in Caroline Springs.
The club made a $155,000 contribution to the Melton community, which recorded annual pokie losses of almost $600 per adult last financial year.
Hawthorn chief executive Ian Robson defended the expansion of the football clubs' gaming operations into the western suburbs.
"We believe the investment is appropriate and not inconsistent with the position of AFL football," Mr Robson said.
"The challenge for all of us is to continue to find ways to grow our revenue bases and get involved with businesses that help us to do that," he said.
Western metro Greens MP Colleen Hartland said Hawthorn had cynically targeted one of Melbourne's most disadvantaged suburbs. "Do footy fans really want their clubs to be funded by family break down, crime and lost homes?" she said.
$111,034,930 - estimated gambler losses for 2006/07 calculated by Charles Livingstone.
RICHMOND
Machines 157 (the Royal Oak in Richmond has 80; the Wantirna Club has 77)
Gambler losses $15m
Community benefit $1.8mCARLTON
Machines 108
Gambler losses $10m
Community Benefit $1m
COLLINGWOOD
Machines 298
Gambler losses $28m
Community Benefit $2.5m
ESSENDON
Machines 100
Gambler losses $9m
Community benefit $1.5m
WESTERN BULLDOGS
Machines 138
Gambler losses $13m
Community benefit $1.8m
GEELONG
Machines 100
Gambler losses $9m
Community benefit $1m
HAWTHORN
Machines 75
Gambler losses $7m
Community benefit $1.8m
MELBOURNE
Machines 92
Gambler losses $9m
Community benefit $1m
NORTH MELBOURNE
Machines 40
Gambler losses $4m
Community benefit $0.1m
ST KILDA
Machines 83
Gambler losses $8m
Community benefit $1.1m
For help or information visit beyondblue.org.au, call Suicide Helpline Victoria on 1300 651 251 or Lifeline on 131 114.
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