Question – Future Gaming Markets
Questions asked by Hon Meg Webb MLC on 31 October 2019 answered for the Govt by Hon Roger Jaensch Minister for Human Services 26 Nov 2019
In the Premier’s evidence to the Joint Select Committee into Future Gaming Markets and as set out in the Hodgman Liberal Government’s Post-2023 Gaming Structural Framework, it states that ‘The right to operate poker machines post 2023 will be allocated and priced by a market-based mechanism, such as a tender’, and also that ‘Hotels and clubs that had machines in place in March 2016 will not require any form of retrospective approvals.’
QUESTION (1) How will a market-based mechanism apply to hotels and clubs that currently have poker machines?
QUESTION (2) Will all hotels and clubs pay a licence fee for their right to operate poker machines?
QUESTION (3) (a) How many individual licenses will potentially be allocated to hotels and clubs under this proposed model?
QUESTION (3) (b) Will a licence be required for each individual location or will companies who own multiple venues apply for one licence to operate across those multiple locations?
ANSWERS (1) to (3) The Government’s Future of Gaming in Tasmania – FGM – policy, released in February 2018, replaced the Post-2023 Gaming Structural Framework and was informed by the outcomes of the Joint Select Committee on Future Gaming Markets.
The FGM policy establishes, amongst other things, the structural framework for electronic gaming machine – EGM – operation in hotels and clubs from 1 July 2023. This includes licensing the right to operate EGMs in hotels and clubs on an individual venue operator model and going to market for the licence to monitor the network of EGMs in hotels and clubs. There are currently 93 licensed hotels and clubs with EGMs.
The Government has established a dedicated Future Gaming Market project team to manage the significant and complex restructure of the gaming industry, which will require legislative amendments to implement. The details of the new regulatory model are under development and will be reflected in legislation to amend the Gaming Control Act 1993.
Due to the complexity of the legislative amendments required to implement the FGM policy, and the need to appropriately consult on these amendments, the Government does not intend to introduce legislation any earlier than March 2020.
QUESTION (4) What is the estimated market value of each of these individual licences and what is their combined market value?
QUESTION (5) What economic modelling has been done or commissioned by the Government on the overall impact on the Tasmanian economy of the proposed new licensing arrangements?
In the joint Tasmanian Hospitality Association/Federal Group submission to the Joint Select Committee into Future Gaming Markets, the industry stated that its modelling estimated that each poker machine venue would be worth, on average, over $1.5 million more under direct licensing (assuming a total state tax take of 38 per cent).
QUESTION (6) Given the tax take stated in the THA/Federal Group submission to the Joint Select Committee into Future Gaming Markets is almost exactly the same as that set out in the Liberal Party’s election policy under the direct licensing plan, can the Treasurer confirm whether the industry estimated figure of an increase in value of $1.5 million for each poker machine venue accords with Treasury modelling?
ANSWERS (4) to (6) The Future Gaming Market project team is continuing to undertake the significant and complex work associated with implementing the Government’s FGM policy, including the development of licence fees, tax rates and licence terms. Government has not yet settled on the licence fees, tax rates or licence term that will apply to hotels and clubs under the FGM policy and therefore no modelling is currently available.
