Services Victoria 2012
THE COMPETITIVE BIDDING PROCESS
Clubs and pubs face a challenging time in the lead up to the competitive bidding process. Over a relatively short period of time they will need to develop an understanding of the potential financial and cash flow implications of operating a venue in the post 2012 gaming regime
Existing Venue Operators will need to consider various factors in determining their participation in the competitive bidding
process
The following questions will be common to all venues:
How many entitlements will we need?
Do you aim for the current number of machines or target more or less?
What will be the impact of the removal of ATM's from gaming venues on gaming machine revenues?
How much will the recently announced harm minimisation initiatives reduce gaming machine revenues?
What level of pricing will your current gaming room revenue support?
What is the potential cost of gaming machines?
How many linked products should be in the gaming room and what will they cost?
How will these decisions impact your capacity to repay existing debt and debt incurred, to be involved after 2012?
Can you afford not to participate or to miss out on acquiring entitlements?
What type of finance will be available to fund the purchase of gaming machines?
Gaming and Leisure Services have extensive experience in considering these issues and can assist with:
Consideration of the optimum number of gaming machines for your gaming room
Preparation of a detailed financial and cash flow model
We have developed a comprehensive model that will evaluate any range of scenarios for your venue, ie: change to revenue, effect of interest on money borrowed to buy entitlements and machines etc
Break even analysis
Bidding strategies for the competitive bidding process
Clubs will also need to consider whether they should elect to pre-purchase club entitlements or wait to participate in the competitive bidding process
Contact Gaming and Leisure Services to arrange an appointment to discuss your needs
Quality gaming advice based on extensive National experience
