Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh

Smoking bans take the heat out of gaming machine market

Smoking bans in licensed outlets are playing a role in reducing demand for and value of the State's poker machines, Deputy Premier and Treasurer, Anna Bligh said today.

"The latest figures also show the cap and reallocation scheme we introduced is operating effectively to limit growth in gaming," said Ms Bligh.

In 2001, the State Government imposed a cap on the number of gaming machines in hotels, and in 2003 introduced a scheme for reallocating gaming machines within that state-wide cap.

The most recent gaming machine reallocation tender highlighted the strength of the State Government's market-based scheme in providing an effective tool for limiting unrealistic demand for gaming machines.

For hotels to operate gaming machines in Queensland, they need to have a Gaming Machine Operating Authority.

"In the last tendering process there were 202 authorities available for sale in the south-east region and 156 were sold; while in the coastal region, only 50 were sold out of the 92 authorities available, and average prices fell by around 23 per cent.

The latest tender prices have dropped from $283,293 a machine authority to $216,948 in the South East, $164,929 down to $113,122 for the Coastal area and $72,909 down from $74,966 in the West.

"We are in no way disappointed with any revenue drop. Every dollar we miss here is more than made up by what we won't have to spend on smoking-related health matters now and in the future."

"The combined effects of our responsible gambling initiatives, smoking bans, and market forces, such as fuel and interest rate costs are ensuring moderation in gambling activity.

"That's why hoteliers are probably now not seeing the need to purchase more gaming machine authorities.

"The cap was introduced due to the State Government's view that the gaming industry was growing at a rapid rate and we feel it is vital that in the community's interests this growth be managed responsibly.

"The scheme for the reallocation of gaming machine authorities was introduced so that authorities could be redistributed within their respective regions through sales by tender.

"The scheme is market sensitive and it's about providing and ensuring fairness in the gaming industry while protecting the needs of Queensland consumers - that's why it's such a sound part of the Government's overall responsible gaming strategy."

Ms Bligh said that the general downturn in the gaming industry contributed to the drop in demand for gaming machines.

"The proceeds from the most recent gaming authorities tender process conducted in May 2007, totalled $24.9 million," Ms Bligh said.

"The sale proceeds from the last tender process have been deposited into the Community Investment Fund.

"This means that not only does the State, on balance, benefit from an effective market controlled gaming machine environment, but that the State Government is also able to give something back to the community."

See website details www.qogr.qld.gov.au/gaming-machines/oper-autho-hotels/authorities


Media contact in Deputy Premier's Office: (07)3224 6900