The Canberra club industry has opposed ACT Labor’s proposed policy to phase out poker machines announced this week, arguing that it will severely reduce financial support for community sports, could potentially destroy the club industry, and harm the local workforce.

“The club industry across Canberra has been blindsided by the announcement this week of proposal for an effective prohibition of poker machines to be phased into the ACT commencing from the beginning of the next term of the ACT Assembly,” Craig Shannon, chief executive of ClubsACT, said.

Yesterday, ACT Labor announced it would reduce the number of electronic gaming machines in Canberra to 1,000 by 2045, with a mandated reduction of 500 machines every four years. To mitigate gambling harm, it would also implement mandatory cashless gaming by 2026–27, with personal spending limits, a self-exclusion scheme, and bans on ATMs and EFTPOS withdrawals in clubs.

ClubsACT, however, criticise the policy for being developed without industry consultation and lacking viable alternatives for the revenue generated by poker machines, which they maintain supports sports and community groups. They argue that planning processes are inadequate for diversification, and that the new policy offers no practical solutions.

“This policy has been developed in a vacuum with no consultation with the industry,” Mr Shannon said. “The policy contains no tangible proposals on how to replace the revenue currently generated through poker machines, which is substantially returned to the community through financial support of sports and community groups. Any suggestion that low cost and affordable housing developments by clubs will create an offset to these income losses is farcical.

“Our industry has been complaining identified for some years now that the planning processes in the ACT are slow, costly, and not giving proper effect to the diversification objectives of clubs and the Government. We have seen nothing to alter these concerns to date or in these new announcements. Any suggestion that gutting club revenue streams will magically translate to increased investment in social and affordable housing projects by clubs is ludicrous even just on face value.

“This new Labor policy is strong on banning poker machines and clubs, but very light on actual diversification solutions.  Where is the information on how clubs can effectively diversify, does the government actually care, and why has this announcement been made just months prior to an election?

“This policy lacks any impact analysis, and what we will see over the term of these proposals is a retraction of the financial support [that] clubs can currently provide to community sports and other groups across the ACT. The potential over its full term may see the complete destruction of clubs as an industry across Canberra, taking with it the large workforce employed in the industry and the social cohesion the industry provides in the ACT.”

Mr Shannon doubted whether the policy would reduce gambling harm, suggesting it might push problem gamblers to online betting or going interstate.

“Any suggestion that this proposal will assist minimising gambling harm is magical in its thinking, false, and has no base of evidence,” Mr Shannon said. “It will only encourage individuals with gambling issues to further migrate to online wagering or cross the border into NSW, thus avoiding the intervention pathways currently available in ACT Clubs where individuals exhibiting gambling issues can be identified and offered access to support and intervention pathways.

“The ACT has a good story to tell about the effectiveness of our gambling harm minimisation approach, and the Government’s own reports identify that those exhibiting the clinical definition of gambling addiction represent approximately 0.08 per cent of the ACT community, which approximates to 3,000 individuals which is across all gambling types. The negative impact of these proposals will affect a vastly greater number of Canberrans than the benefits it will supposedly bring those with gambling addiction. Canberra has the highest per capita income in Australia. Most people who gamble do so for entertainment and within their own budget capacity. Just what benefit this policy will ultimately achieve for the community compared to what negative impact it will have is completely dismayingly untested.”

Mr Shannon suggested that the removal of ATMs and EFTPOS withdrawals from clubs could inconvenience many, particularly older residents.

“The proposed removal of ATMs and EFT withdrawals from clubs will also broadly impact across the community, given the increased disappearance of ATMs generally across the ACT,” Mr Shannon said.

“At the moment, clubs are often the only locations for some ATMs where Canberran’s can access cash readily, and this will negatively impact on many older Canberrans who use cash as their primary budgeting and expenditure vehicle.”

Mr Shannon warned that the policy would lead to higher food and beverage prices, closure of community sports facilities, and loss of social venues, and questioned whether the government would compensate for those losses.

“There will be many losers and few winners from this policy, and in terms of harm minimisation, it seems at odds with the approach taken with illicit drugs,” Mr Shannon said. “On one hand, we are told deregulation of illicit drugs is the best model for harm minimisation and a health based approach, and yet with gambling, we are told increased regulation and effective prohibition is the best approach.

“Does anyone care that community sporting facilities will close? Club-funded golf courses, bowling clubs, community meeting rooms, and sports ovals and stadiums will become unviable.

“Will the government pick up the tab for all the sporting and cultural organisations currently funded by clubs?

“Will the community care that food and beverage prices will rise to add to the cost of living? “Is Canberra the same place without your local community club? This is now a certainty if this policy proceeds.”