Far more hotels than clubs with poker machines in South Australia, compared to other states, territories
Clubs SA's 2023 awards nights had Salisbury North Football Club staff with manager of the year Daniel Parry (centre) celebrating as club of the year and five category wins including best gaming venue. Among other winners: South Australian Jockey Club, Morphettville (top right) for best function/event venue and Murray Bridge Club (bottom right) for best refurbishment.
Images courtesy Clubs SA
The dominance of South Australian hotels have poker (electronic gaming) machines compared to clubs was an exception among most Australian states and territories.
A 1999 Productivity Commission reported showed that South Australian clubs had only 12% of the machines compared to a national average of 65%. The clubs-to-hotels ratio of machines (excluding those in casinos) across the nation was –
* South Australia: 12% clubs, 88% hotels;
* Victoria: 50% clubs, 50% hotels;
* New South Wales: 73% clubs, 27% hotels;
* Queensland: 64% clubs, 35% hotels;
* Tasmania: 16% clubs, 84% hotels;
* Australian Capital Territory: 98% clubs, 2% hotels;
* Northern Territory: 77% clubs, 23% hotels.
Clubs SA, the not-for-profit body founded in 1919 to represent South Australian licensed clubs’ interests, reported on its smaller clubs struggling to survive against the low-cost food and alcohol at hotels with poker machines. Clubs SA argued that have gaming machines mostly in hotels “is unhealthy because it concentrates wealth into the hands of private owners, not all of who are reinvesting into South Australia”. It recommended a long-term government policy to evenly distribute gaming machines (50:50) between clubs and hotels and that clubs with gaming machines be granted a $100,000 tax-free threshold.
lubs SA also asked for a special licence to allow “host” clubs to have 100 gaming machines under one roof, while keeping the maximum of 40 gaming machines for each individual club. This would promote economies of scale by allowing clubs to pool their limited resources.
The host club idea was enabled by Club One (South Australia) Ltd, a private not-for-profit company linked to Clubs SA and the South Australian National Football League. Club One bought poker machines from “vesting clubs” and placed the “vested entitlements” with host clubs, or parked poker machines short term with other clubs or hotels. Club One (SA) bought the poker machines for a lump sum or offered selling clubs an income stream (like an annuity). Vesting with Club One (SA) removed the clubs’ obligation to comply with a gaming machine licence. That meant they could apply for grants and support on the same basis as a non-gaming clubs.
The South Australian government’s gaming tax applied at a lower rate for non-profit associations (club or community hotel) than privately-owned hotels with poker machines.