Sir Max Bingham – Anti-Pokies Support

Media Release| 9 August 2021   

Independent Member for Nelson Meg Webb’s submission on the Future Gaming Markets legislation includes independent economic modelling showing Tasmanian taxpayers missing out on at least $367 million to the poker machine industry.

The modelling was funded by former Tasmanian Liberal Deputy-Premier and Attorney-General Sir Max Bingham.

Sir Max Bingham, now 94, served Tasmania in the then electorate of Denison (now Clark) from 1969 to 1984.

“Back in 1969 when I entered State Parliament the Labor Party was led by Eric Reece and the Liberal Party by Angus Bethune – two men who were in politics to do something to make Tasmania better and between whom there was a high level of mutual respect,” Mr Bingham said.

“I have now decided that to make a contribution to the improved regulation of the gaming machine industry.

“I am sure my former Premier Angus Bethune would approve of action to help give Tasmanian punters a more nearly fair go, which the present level of sophistication of the machines currently denies them.

“I confess to another motive. The performance of both Liberal and Labor parties and the gaming machine industry in the 2018 and 2021 elections has caused me great concern and has seriously imperilled democracy in Tasmania.”

Ms Webb said Mr Bingham represents the days when the State’s political leaders had integrity.

“Their aspirations were to make our state better and put the interests of the Tasmanian people and communities first,” Ms Webb said.

“As an elder statesman of Tasmanian politics, Sir Max is still passionate about better outcomes for our state and is prepared to contribute to that. In contrast, we now see poker machine industry dictating pokies policy for both the Labor and Liberal Parties.

Ms Webb said the Gutwein Liberal Government has still never bothered to make the case for its pokies policy – either financially or socially.

“The Government has provided no credible rationale for the tax rates and licensing fees in the policy and consulted with no one outside the industry to inform those rates and fees.

“With Sir Max’s support, I commissioned this economic modelling to inform the public and Parliamentary debate by looking at the state revenue that would be forgone by the government under its policy.

“Tasmanian taxpayers will miss out on hundreds of millions of dollars across the license period due to rates that are set too low for poker machine licenses, casino pokies tax rates and Keno operator licenses and taxes.

Ms Webb said there was no justifiable reason to discount the tax rate on casino pokies.

“Setting the casino pokies tax rate at 13.91 per cent, compared to a hotel pokies tax rate of 38.91 per cent, is an outright gift to Federal Group of $250 million over the 20-year license.

 “That’s a quarter of a billion dollars which should be going to Tasmanian schools, hospitals and social housing.”

Ms Webb said instead of delivering the best deal for the Tasmanian people, there are enormous question marks hanging over this policy.

“The Tasmanian Liquor and Gaming Commission has warned this model will be harder to regulate and risks causing more harm.

“It is policy and regulation written by industry, for industry, being progressed by a compliant and indebted Liberal government.”

Ms Webb said Mr Bingham’s contribution has assisted in shining a light on some of the glaring failures of this flawed and tainted policy.

“No doubt, there are many Tasmanians, like Sir Max, who are affiliated with the major parties and are dismayed by the compromised and distasteful positions of those parties when it comes to poker machines.

“I encourage those Tasmanians to speak up and make their voices heard as this legislation is brought to Parliament.

“This may well be our last opportunity in Tasmania to responsibly license and regulate poker machines and put effective harm minimisation in place.

“Premier Gutwein’s proposed changes will deprive every future Tasmanian government of the opportunity to make industry-wide reform such as he is doing now.

“With dozens of new licenses doled out, venue sales will see the license periods become staggered and there will never again be a single moment in time in which all licences expire.

“This is a do or die moment when it comes to poker machine reform in Tasmania.”

The economic modelling was prepared by ACIL Allen, the same firm commissioned by the State Government to the 2nd, 3rd, and 4th Tasmanian SEIS reports.

Key points from Report:

Leading independent economics, policy and strategy advisory firm ACIL Allen has reviewed the Government’s proposals for tax and license fees for pokies and keno in Tasmania. Their report finds the Government’s proposal is not the best deal for the State. A small increase in license fees for pokies and setting tax rates in the casinos at the same rate as hotels for pokies and keno would see an additional $367 million going into the State budget over the proposed 20-year license period.

• Setting EGM licenses at an average of $4000 rather the proposed average of $1643 would see additional income of $5.4m annually = $108.7m over 20 years.
• Setting tax on pokies in casinos at the same rate as those in hotels (i.e. 38.91% rather than proposed 13.91%) would see additional income of $14.9m annually = $248m over 20 years.
• Setting tax on keno in casinos at same rate as those in hotels (i.e. 20.31% rather than proposed 0.91%) would see additional income of $0.52m annually = $10.5m over 20 years.

Read the Report here

See more information on Meg’s pokies page