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Australia

Iris Capital awaits decision over push to expand its pokies empire in Alice Springs

In the backroom of an outback pub, a group of about 100 concerned locals have gathered to perform a rendition of the smash hit Blow Up the Pokies by The Whitlams.

Assisted by the local choir, community members are making their voices heard over plans to roll out dozens of new poker machines in pubs and hotels across Alice Springs.

“I’ve turned up because… I work at the hospital here in Alice Springs and I see every day how many problems our people have,” one attendee said.

“We don’t need any more gambling in our community.”

Hospitality giant Iris Capital has applications in for 60 new pokies to be installed in four of its newly purchased Alice Springs venues, including several where there currently are none.

The Sydney-based company has already expanded its gaming machine empire, having added at least 115 new pokies at Lasseter’s Casino since purchasing the Alice Springs venue for $105 million last October.

Two women stand side by side singing in a pub
Close to 100 community members attended the local pub to sing a rendition of “Blow Up the Pokies”.(ABC News: Xavier Martin)

Locals have taken up the fight, expressing concerns that adding more pokies will disproportionately affect some of the region’s most vulnerable residents.

A ‘perfect storm’

Anti-pokies campaigners have said the timing of the applications makes for the “perfect storm”.

In July, long-term alcohol bans introduced during the NT intervention in dozens of remote communities and town camps surrounding Alice Springs came to an end.

Frontline organisations, including the Central Australian Aboriginal Congress and the Royal Australasian College of Surgeons, have said they have seen a spike in alcohol-related serious injuries in the weeks that have followed.

Empty liquor bottles and cans lay in the dry Todd River.
Frontline organizations have said the ending of long-term alcohol bans makes for the “perfect storm.”(ABC News: Xavier Martin.)

Meanwhile, the use of the cashless debit card, which limits welfare payments being spent on alcohol and gambling, is set to be scrapped by the Labor government.

Campaigner and former gambling addict Roxanne Highfold said there were already too many machines in Alice Springs, a town which grapples with some of the highest rates of poverty, alcohol abuse and violence in the nation.

“To be honest, I worry about my people using the poker machines and falling even into more debt, and also what the long-term impact that will have on the community,” she said.

A woman talks into a microphone in front of a crowd.
Roxanne Highfold speaking at a community meeting about poker machines.(ABC News: Sam Jonscher)

“I would hate to see Alice Springs get to a point that every single pub has got poker machines, and that it takes away the recreational activities from the pubs, where families can go to enjoy a meal or enjoy other recreational activities.”

The decision on whether to approve Iris Capital’s applications rests with the NT’s Director of Gaming Machines, who, the government says, operates at an arm’s length from cabinet.

Gaming Minister Chansey Paech has been accused of “sitting on the fence” over the pokies plan, and has refused to comment directly on whether he has held concerns about the potential expansion.

Chansey Paech standing in front of microphones, with pokies in the background
Northern Territory Gaming Minister Chansey Paech is facing questions about more poker machines being installed in Alice Springs.(ABC News: Matt Garrick)

‘Cashed up’ companies in the gambling industry

There have long been concerns about the gambling industry’s ability to influence government decision-making through well-documented tactics such as political donations and lobbying.

Researcher Tony Brown has been providing legal assistance to members of the Casula community in south-west Sydney, where Iris Capital is in court making a similar push to expand its pokies empire despite pushback.

dr tony brown (1)
Tony Brown says the investment companies are opportunistic.(Supplied)

“We see these organizations moving in and their priority is unmistakably in terms of maximizing their profits, but we see very little government and legislative attention to the harm and consequences associated with the proliferation of pokies and alcohol outlets,” said Dr Brown.

Dr Brown, who has recently completed a PhD examining the regulation of alcohol and pokies across the country, said companies operating in the industry were typically powerful and politically connected, and tended to target low socio-economic communities.

“What we’re finding is that these cashed up, opportunistic corporations are really taking advantage of these desperate communities,” he said.

“They really are being made ripe for plucking.”

A hotel with palm trees eclipsed by a setting sun.
The Mercure Resort in Alice Springs is one of several venues Iris Capital has made new gaming machine applications.(ABC News: Xavier Martin)

Dr Brown said large gambling and liquor companies had over the decades “hijacked” law-making and regulatory processes across much of the country, flying in the face of politicians’ responsibility to work in the public interest.

“The role of government is to protect communities from outside threats and influences” he said.

“What we’re finding instead is that those industries effectively captured our democratically elected politicians and those institutions that they control.”

Across the Northern Territory, there is a cap of 1,699 pokies in operation for licensed venues, as well as caps for each venue.

However, no such caps exist in the NT’s two licensed casinos: Lasseters and Mindil Beach Casino Resort in Darwin.

A man stands in by a pool at a resort.
Iris Capital chief executive Sam Arnaout says Alice Springs is “undiscovered from a business perspective.”(ABC: Samantha Jonscher)

As the overall cap edges closer to its limit, there has been a spike in the number of gaming machine applications made to Licensing NT from just one in the 2021–22 financial year to eight since July (four of which are from Iris Capital).

As a nation, Australia has more pokies per person outside of casinos than anywhere else in the world, and holds the title as the country with the world’s worst average gambling losses at about $1,000 per adult each year.

Investment in the Territory ‘welcomed’

The NT’s hospitality industry peak body has thrown its support behind Iris Capital’s applications, arguing the company was being unfairly targeted.

“We welcome investment in food, beverage, accommodation, upgrades right across the Territory, and yes, gaming services is part of that,” said Alex Bruce, the chief executive of Hospitality NT.

posed headshot of man standing on a pub veranda smiling.  Top button open
Alex Bruce has staunchly defended a plan to install 60 new pokies in Alice Springs.(ABC News: Terry McDonald)

“There’s a lot of problem gambling that goes on in unregulated community card game houses, in the streets, in the public parks.

“People can sit at home and bet online and lose their house – we never see any focus on that, it’s always on the pub with the light on.”

Mr Bruce said the Territory had some of the best gambling regulations, pointing to a number of recent changes to the NT government’s Code of Practice for Responsible Gambling, including a mandatory online course for staff working in the industry.

Iris Capital did not respond directly to questions about its business strategy or the potential impact of its plan for Alice Springs, but said in a statement the company sought to use its newly purchased venues to their full “capacity”.

“Iris will look to spend significant monies to reposition and activate the venues to operate to their capacity in all areas. This includes gaming,” the spokesperson said.

A sign that calls for no more poker machines is taped to a pole
Alice Springs locals have organized several community events to push back against a plan to install 60 additional pokies in town.(ABC News: Xavier Martin)

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Categories
Australia

Fears affordable housing project in Melbourne’s west will entrench isolation for new residents

Community leaders in Melbourne’s west have raised concerns a plan to convert a slice of land next to a freeway into more than 800 homes could result in social isolation for its new residents, unless major changes are made.

The proposed 41-hectare site in Cairnlea is just off the busy Western Ring Road and was part of the Albion Explosives Factory from the 1940s to the 1980s.

Development Victoria plans to build 840 homes on the site, 25 per cent of which will be affordable and social housing.

Graeme Blore has spent 17 years working in Cairnlea with communities dealing with social disadvantage.

He wants to see more social housing in the suburbs, but he is not convinced Development Victoria’s plans strike the right balance.

“It’s a vital issue, and really important to every community, but it actually needs to be done in a way that’s holistic, that embraces and enhances community,” he said.

A fence with a sign stating it is private property and dumping is prohibited
More than 800 new homes will be built at the Cairnlea site.(ABC News: Darryl Torpy)

One of his main concerns is the site’s proximity to late-night pokies venues on Ballarat Road.

The venues netted $80,000 per day in 2019-2020, according to Brimbank City Council data.

The council area, which covers Cairnlea and surrounding suburbs such as Deer Park and St Albans, has the highest pokies losses in the state — an average of $444,000 per day or $92 million per year.

“It has the potential to end up as a social housing ghetto, with a lack of opportunity,” Mr Blore said.

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Categories
Business

Victorian government introduces reforms for Crown Melbourne amid calls for pre-commitment rules to apply statewide

Punters at Melbourne’s Crown Casino will be forced to pre-commit to losses and time spent on poker machines as part of reforms introduced in the wake of damning royal commission findings.

The 12 measures are the latest from 33 recommendations from the Royal Commission into the Casino Operator and Licence, which found an “alarming catalog of wrongdoing” at Victoria’s only casino.

The Melbourne casino — Victoria’s largest single-site employer — has been able to hold onto its license as long as it meets a number of conditions, including implementing the reforms.

US firm Blackstone recently completed an $8.9 billion takeover of Crown’s operations in Melbourne, Perth and Sydney.

Under the legislation being introduced in Victoria today, all Australian residents at the casino must set a maximum limit on how much they are prepared to lose before they begin using pokies.

A blond woman sits with a drink at a pokie.
Victorians lose more than $1.5 billion at the pokies each year.(abcnews)

“This is a world-first in a suite of reforms,” ​​Gaming Minister Melissa Horne said.

Technology to enforce the limit and track the time and money spent does not yet exist.

The government will give the Crown until the end of 2023 to have the mandatory pre-commitments in place, with the minister saying “it needs to be fully rolled out by no later than the end of 2025”.

The limit will be entirely up to the pattern.

Calls for pre-commitments to apply statewide

Chief Advocate at the Alliance for Gambling Reform Tim Costello welcomed the news.

“This is a really a historic day for the state government and therefore the people of Victoria — winning back power over the Crown, that has completely dominated the landscape and dominated the terms of engagement,” he said.

An older man sits smiling at the camera.
Gambling Advocate Tim Costello says the move gives gambling patrons better tools to avoid harm.(ABC News: Jeremy Story Carter)

He said he believed the pre-commitment system should apply to all pokie venues in the state.

“You can link the same system for pre-commitment to all pokies through clubs and hotels in Victoria so simply … the greedy pubs and clubs with pokies have fought this for more than a decade,” he said.

Crown Melbourne has about 2,600 pokie machines, about 10 per cent of the 26,321 spread across the state. Government statistics show more than $1.5 billion is lost on the pokies across the state each year.

When asked whether the limits were likely to be enforced at other gaming venues, Ms Horne said the government was focused on implementing the recommendations of the royal commission.

The minister said there was not a dollar figure or modeling attached to the mandatory pre-commitments to show how much better off patrons would be under the measure.

Other measures to tackle ‘money-laundering activities’

Repeated breaches of money-laundering rules and links to organized crime were identified at the royal commission.

Under the new measures, the use of cash will be limited to $1,000 per 24 hours in a bid to crack down on money laundering.

Crown Casino seen across Yarra River.
Crown Casino employs thousands of Victorians.(ABC News: Darryl Torpy )

The legislation will make it mandatory for patrons to use casino-issued cards and identification to gamble or receive winnings of more than $1,000.

“Again, this is a first for Crown Casino. And it is aimed directly at tackling money-laundering activities,” Ms Horne said.

It builds on measures introduced earlier which direct Crown to only hold a single bank account for patrons to deposit funds.

Other new rules include making Crown pay for the cost of regulating the casino, which the minister said was “only reasonable that for the additional level of scrutiny that Crown requires, they should also be able to pay for that”.

Any person or business wanting to own more than 5 per cent of the casino operator or its holding company will require the approval of the state’s new gambling watchdog.

Crown has been contacted for comment.

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