Pokies reform delayed by tech costs

THE clubs industry has held off promised pokies reform, citing the costs and difficulties of implementing software and hardware upgrades this year.
Julia Gillard has abandoned her deal with independent MP Andrew Wilkie for the introduction of a compulsory precommitment scheme for gamblers in all poker machine venues by the end of 2014. Instead, the government will fund a $40 million-plus trial in the ACT early next year.

Clubs Australia has warned that the mandatory scheme would involve compulsory registration of about five million people, a nationally managed database of registered players and associated identification, verification and tracking systems.

The peak clubs association said the government had "severely underestimated" the size and cost of the technical undertaking required to link 197,000 electronic gaming machines in 5700 venues by 2014.

The Prime Minister yesterday rebuffed suggestions that delaying the start of the ACT trial would push the issue off the political agenda until after the next federal election. "We've got to deal with the practical realities of the world in which we live," she told the Radio National Breakfast show.

"Every machine needs to be changed (to incorporate) the precommitment technology; some may probably have that (capacity) now, but every machine that doesn't needs to have it. As well, the software to link the machines needs to be (implemented)."

Ms Gillard said the government had taken "very careful advice" on the necessary timelines "and it will take until next year".

"We can't wish away the facts," she said. "We've been advised it's not possible to start this trial earlier than 2013 due to the large amount of set-up work that needs to be done. Now people can pretend that's not the reality, (but) I am Prime Minister of the country, I deal in facts, and that's the fact."

According to Clubs Australia, the games machines will face a software upgrade at the minimum, while many old machines will need to be scrapped and replaced or retrofitted with new hardware including card readers for identity verification and networking to the proposed tracking system.

In the ACT, hotels and clubs operated about 5000 machines during 2009, earning them about $180m, according to the latest available figures.

For taking part in the year-long trial, each venue will be paid 20 per cent of its gross gaming machine revenue in 2010-11, totalling $36m across the ACT.

The payment will offset potential losses as gamblers reduce their spending or hop across the border to escape the trial.

The government will also fund "100 per cent of all necessary infrastructure" -- including development of the centralised monitoring system, databases and precommitment capabilities -- and spend several million dollars more in a "venue readiness and capacity" package.

Clubs Australia executive director Anthony Ball welcomed the government's decision to conduct a small-scale trial.

"In coming days, we will work through the details of the Prime Minister's policy," he said.

Last week, Mr Ball said polling showed voters favoured a voluntary precommitment scheme.