Hundreds of NSW pubs and clubs are likely to see a shakeup of their trading as the government looks to tighten variations to the mandatory shutdown period on gaming machines.
As per the Gaming Machines Act 2001, registered hotels and clubs cannot operate EGMs between the hours of 4am and 10am without a formal variation approved by ILGA (Independent Liquor and Gaming Authority).
The shutdown period is touted as a key measure to address gambling harm, based in reducing the risks seen to be associated with prolonged gaming machine use.
For the past two decades venues have been able to apply for varied or reduced shutdown periods on the basis of boosted tourism benefits, or financial ‘hardship’, which includes the argument that the venue is losing patrons to other venues.
Venues that had machines before 1997 may also be granted different shutdown hours.
This system has come to count around 670 venues with non-standard shutdowns, seen by some as a “loophole” to the purpose of the regulation.
It has been reported that several of the state’s Top 10 most profitable gaming clubs actually hold hardship exemptions to shutdown periods.
Researchers engaged by the NSW government found over 22 per cent of patrons gambling in the period of 2am to 8am were classed as problem gamblers.
Further research by Roy Morgan similarly linked late-night play to more extreme gambling, and the Productivity Commission recommended mandatory shutdown periods begin at 2am.
However, the panel providing recommendations to the NSW government under Chris Minns declined to recommend a stop to poker machines operating late at night.
The government has begun revoking the variations and is taking a phased approach to adjusting the application process, such that venues can still submit a case to vary shutdown hours.
“Following months of review, it is clear the 20-year-old variations enabling more than 670 clubs and pubs with gaming machines to operate outside of the mandated hours were no longer fit for purpose,” said Gaming Minister David Harris.
The updates will reportedly be introduced via revised ministerial guidelines.
The news coincides with an announcement by Liquor & Gaming NSW (L&G) that it will conduct a targeted compliance campaign on trading hours throughout November and December.
The Central Monitoring System (CMS) monitors the operation of all gaming machines in the state. L&G will use data from the CMS to identify venues running machines outside the required shutdown hours.
Those found in breach of gaming machines operations face escalated enforcement action, such as the recent case where the Concourse Hotel at Wynyard and Olympic Hotel at Paddington were collectively fined more than $150k.
