Victoria’s powerful machine gaming lobby is targeting 35 key seats in the Australian state’s legislative election in November in retaliation for the tax increase the government of Premier Denis Napthine imposed on club revenues earlier this year.
Clubs and pubs will campaign against the government’s Liberal Party-National Party coalition in crucial suburban and regional seats. They argue that the tax hike will cost jobs and create a shortfall in funding to charities and community sports, a strategy similar to the successful federal campaign spearheaded by Clubs Australia against the Gillard Government’s slot reforms in 2011. That effort, led by New South Wales-based lobbying groups, targeted marginal seats and was ultimately successful in watering down reforms.
Treasurer Michael O’Brien announced the tax increase last December, saying rates set by the former Labor Party government were too low to recover Victoria’s historical share of revenue.
The increase is forecast to reap the government an extra A$280 million by the end of 2016-17.
In retaliation, the “Our Pain, Napthine Gain” campaign claims the tax increase will extract $20 million from community clubs this year and $75 million over the next four years. Lobbyists for the clubs say the industry pumps $300 million into community groups every year and employs 15,000 people in Victoria.
Victoria has around non-casino 27,000 slots which generated $2.3 billion in revenue over the last year.
The government also is contending with a recent Supreme Court judgment requiring it to pay betting operator Tatts $461 million plus interest in compensation for the loss of the machine gaming duopoly the company shared in the state with Tabcorp. The duopoly, dismantled by the Labor government, took effect in 2012. The government says it will appeal the award.
