PUBS

The implementation of the Venue Operator system places significant emphasis on the need to make quality commercial decisions regarding the pricing of gaming machine entitlements

Decisions that need to be made in early 2010 and will be based on assumptions regarding the future profitability of operating a gaming venue post 2012

 

IMPLICATIONS OF THE POST 2012 GAMING INDUSTRY ARRANGEMENTS FOR PUBS

Approved pub venue operators will need to obtain gaming machine entitlements via a competitive bidding process Anticipated to be held early 2010
Subsequent to successfully obtaining gaming entitlements venue operators will need to purchase gaming machines and gaming equipment. This will involve critical decisions regarding the make and model of gaming machines, mix of denominations and games together with an appropriate mix of in house linked jackpots designed to satisfy customer preferences
Gaming machines are to be continuously connected to an independent monitoring system
Venue Operators will have the ability to set return to player ( RTP ) percentages. The minimum RTP of 87% remains unchanged
Venue Operators will be responsible for the operational performance of their venues

A SIGNIFICANT FUTURE FINANCIAL INVESTMENT

An investment in the post 2012 gaming industry represents a significant financial commitment and
should only follow a thorough planning process. It will be essential that venue operators have a clear understanding of current and future finance commitments and obligations and the extent to which third party finance may be required

The introduction of various harm minimisation techniques ( ie the removal of ATM's from gaming venues ) by 2012 will impact on gaming room revenues and it is unlikely that the past performance of your gaming room will be a reliable guide to the potential performance of your gaming room under the post 2012 gaming arrangements

The progressive taxation system that is to be implemented with the post 2012 gaming arrangements is anticipated to provide pubs with additional revenue to meet the capital cost of gaming entitlements and gaming machines together with new additional operational costs such as gaming machine maintenance and monitoring fees

The key challenge will be to understand the extent and timing of potential revenues and costs associated with operating a gaming room post 2012. An incorrect pricing strategy for the purchase of gaming machine entitlements could have disastrous financial consequences

Gaming and Leisure Services have extensive experience with Venue Operator gaming venues and are in a unique position to assist you to prepare for the competitive bidding process for the gaming machine entitlements and subsequent operation under the post 2012 gaming arrangements

Are you prepared for the competitive gaming entitlement tender and the associated obligations?

 

PROGRESSIVE TAX STRUCTURE

The proposed progressive tax scale will apply to hotels as follows:

Average monthly revenue per machine
Hotel Tax Rate
0 to $2,666
8.33%
$2,667 to $12,500
50.83%
$12,501+
58.33%

Contact Gaming and Leisure Services to arrange an appointment to discuss your needs

Quality gaming advice based on extensive National experience

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