Clubs chase jackpot in pokie heartland
Sydney Morning Herald, Saturday, October 6, 2007
Andrew Clennell ,State Political Editor

THE number of poker machines in Sydney 's biggest problem gambling area is set to pass 4000 after six pubs and clubs applied to install more machines.

In the local government area of Fairfield , average incomes are about $35,000 and the average person loses $1793, or 5 per cent of their income, on the pokies.

But the Liquor Administration Board has approved a rise in poker machines for four licensed premises in the past 18 months - Cabramatta Rugby League Club (up six), the Abruzzi Friuli Veneto Sports Club in Lansvale (up 10), Canley Heights Hotel (up six) and Sunnybrook Hotel (up 10).

Now the board is considering another two requests. Canley Heights RSL has applied for 56 extra machines, to take its number to 200. And the Cabra-Vale Ex-Active Servicemen's Club wants 34 more machines, which would take its number from 416 to 450.

In 2005, before the latest applications, the approved number of machines in Fairfield was 3922.

The Government washed its hands of the issue yesterday, with the office of the Gaming and Racing Minister, Graham West, saying these were matters for the Liquor Administration Board.

"Any venue seeking to increase gaming machine numbers must go through a social impact assessment process. Applications are advertised and anybody - including councils and local residents - can lodge objections," a spokeswoman for Mr West said. "The [board] must take these objections into account when making decisions."

But Fairfield councillor Thang Ngo said that when the council had opposed other applications they had still been approved.

The Herald has obtained Canley Heights RSL's confidential social impact assessment submission. It admits that the club's wish to increase its poker machine numbers by 56 is likely to create more problem gamblers in the Fairfield area.

The submission estimates "an additional nine to 12 persons may be at higher risk of developing gambling problems" as a result of more gaming machines.

The submission cites a model produced by the Productivity Commission in 1999 that found a severe problem gambler usually affected seven other people's lives. "This being the case, the estimate for additional severe problem gamblers possibly arising from the new machines … would result in an additional 28 to 35 persons being adversely affected," the submission said.

But it said the machines would provide $601,720 in state taxes and $39,254 in payroll tax from the extra staff required.

A spokesman for Cabra Vale Diggers and Canley Heights RSL, Garrie Gibson, said the Cabra Vale club had spent $15 million on expanding its facilities and the revenue from the machines would pay for extra staff.

The Canley Heights proposal would also lead to more jobs, he said, and few objections had been raised to either proposal.

Mr Ngo has written to the Office of Gaming and Racing calling on it to stop the Canley Heights RSL proposal.

The Herald understands that after lobbying from pubs and clubs, the Government has decided to leave decisions in the hands of the board.