After recent references to pubs and clubs ‘raping’ local communities and a swift Ministerial smack-down, the Independent Liquor & Gaming Authority appears to be back in the business of hospitality.
In recent years the Authority (ILGA) has seemingly adopted an approach of fighting the transfer of poker machine entitlements between venues and specifically hindering people playing after midnight, citing increased levels of harm and threatening it could use its power to impose new restrictions “at any time”.
The stance has stymied a lot of potential transfers, which beyond stifling industry has hindered the government’s goal for an overall reduction in EGM numbers, as operators are afraid to apply for any changes lest they be hit with new licence conditions.
A recent legal breakfast was assembled to discuss poker machine regulations and the preparation of applications by pubs and clubs for changes to operating hours, including gaming room operation, and solicitors present asked questions as to why ILGA had been seeking to wind back operating hours.
In a reply that shocked the room, ILGA chairperson Caroline Lamb stated that gaming venues have “no social licence to rape and pillage the community”, prompting a “gasp” across the room, according to one attendee.
Pressed on the comments in the following days, Lamb would not back down, and while not specifically addressing questions regarding ideological objection Lamb may have to gaming, a spokesperson for ILGA justified the remarks as directly relating to the Authority’s mandate for “regard to harm minimisation”.
The office of Gaming and Racing Minister David Harris moved swiftly to issue ministerial directions making clear the government’s expectations, and the Minister issued a rare public rebuke of Lamb over the comments, stipulating that public comments “require professionalism, clarity and awareness of responsibility”.
ILGA was reminded it is not authorised to construct its own policy positions, with a spokesperson furthering that it is a requirement ILGA performs its role “in a manner that promotes public confidence” in its decision-making.
Instructed to stop imposing arbitrary rules on pubs and clubs, the Authority was advised on objectives, according to the Liquor and Gaming Machine Acts. These include: harm minimisation, responsible conduct, balanced development of the gaming industry – “with minimal formality and technicality”, and an overall reduction in pokies numbers, which is facilitated by the forfeiture of licences during transfers, using the tradeable gaming machine entitlement scheme.
Harris’ office stressed the regulation is designed to both minimise harm and facilitate development.
“While due regard is to be had for the need to minimise gambling harm … this is one of several considerations,” says Harris.
“As there is no hierarchy to the objects within either Act, ILGA must give each of the objects equal weight.”
ILGA has been ordered to: consult the Minister before reviewing venue licence conditions, not “develop or impose” its own policies, and not carry out its own research when considering conditions on pubs and clubs.
A report from the Auditor General’s office illustrates how ILGA’s recent practise of deliberating most applications, rather than allowing Departmental approval on standard applications, has led to a dramatic reduction in overall application.
In the years spanning FY20 to FY24, the number of rulings by ILGA have increased 1400 per cent, while those ruled on by the Department have decreased 81 per cent and overall applications have fallen 37 per cent.
This directly translates into a major reduction in the number of EGM transfers, and thus forfeiture, as well as expensive often existential delays to transfers for operators.
While no operator was prepared to speak on the record, for fear of being in the spotlight, there is no question industry has come to see ILGA’s recent decision-making as quite seriously biased toward harm minimisation, even at the expense of progress.
The ominous nature of the process in recent times has contributed to a reduction in the value of entitlements of around 50 per cent, and likely prevented further development of both new and existing hotels; a recent greenfield at Austral had its initial approval to operate gaming machines overturned.
“From an agency point of view we have seen the number of gaming machine transfers drop by 60-70 per cent, and the number of new greenfield hotels being developed in important growth areas drop by circa 80 per cent since the ILGA board were appointed,” reports HTL Property’s Xavier Plunkett.
But having received the directives, ILGA met last week to consider the latest round of applications, and in a positive sign, out of 28 submissions, 23 were wholly or partially approved.
“A stable legislative environment is critical to hoteliers being able to invest in and grow, their businesses,” adds Plunkett.
