We might be the best and most vigilant poker machine operator in Victoria but it still doesn’t get away from the facts of where the funds are coming from. If we have to have poker machines they are better suited to be in gaming destination venues and not spread around the suburbs. Even if we sell to a group (such as Melton Harness) and they increase the number of machines they hold, it becomes politically easier to bring in new restrictions to a smaller amount of operators than it does when there are many operators.
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You mean like how when companies reduce their competition grow bigger, stronger, richer and yet have less influence on government than when it was a diverse group. A bit like how Woolies and Coles are now so easily controllable by government.
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Its not really a hot take. Its a practical take to minimise the undoubted harm that these venues cause to vulnerable members of society.
I am not sure you have any idea on this issue. Studies show that about 1% of users can be classified as problem gamblers.
Bombers and others have good programs to detect and support this group. Just because people gamble and lose money, doesn’t mean they have a problem. Melton Club is a good community based club and without it, many would suffer.
Have you ever been to the Melton Club and seen what it provides to its community.
@Bacchusfox time to remove those rose coloured glasses. 15% of poker machine gamblers account for 40% of the losses. These figures are consistently to be found to be true. It is generally accepted that those 15% are considered as problem gamblers and yes that ratio would hold true for the Melton Country Club.
That is just nonsense. Melton Harness pokies are unsupervised and anyone over 18 can use them without any control.
Go to Crown and try playing pokies now. You have to log on and set limits before you can play.
Mrs Fox did her PhD on gambling and its effect in Ballarat and some of the findings are horrific. However, all the stats show that while perhaps 15% of poker machine gamblers account for 40% of the losses. Problem gamblers are about 1%. Still very bad for them, but most people who gamble and play pokies manage.
I play pokies all over the place, and Crown are the most heavily regulated. Melton Club is a bit behind them but not far. Local pubs, Tabcorp Park ( Melton Harness), Golf Club are hopeless.
I guess it depends upon your definition of problem gambler but it’s an interesting insight. The new restrictions the government is bringing in around spin rates, no cash and additional closing hours seems to be needed to rein in the local pubs and groups like Melton Harness.
You’re talking as though we get out of pokies and our assets just poof into non existence.
- We sell the pokies for 8 figures (cash reserves look healthy now).
2 with all the cash we invest in other business/investments
3 we now have alternate revenue streams
It’s really not complicated.
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the club won’t sell the pokies until it has an alternative revenue stream and it won’t acquire an alternative revenue stream while it still has the pokies
it would take actual conviction from the club to commit to be better
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I’m way behind, but if the business case and plan for the club relies on poker machine revenue, rather than being able to stand on its own as a business, then surely that’s an issue, rather than the other way around?
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In theory that’s correct. However, unless you know something I don’t, the club doesn’t have an advanced stage plan to source this replacement revenue. These initiatives don’t just happen with a click of the fingers. It takes thorough due diligence.
They appointed someone a year or two ago to build this strategy. Where’s it at? What’s the update?
The club is ‘focussed on football’ and I’ve seen no evidence suggesting its strategic planning has unearthed any concrete initiative.
I’m in business, so what you might say. Point is, you don’t just cut off a $10M revenue source immediately without concrete plans to replace it. The club has shirt / medium term commitments pending for Windy Hill transformation, then it will need to refurbish The Hangar again. The club has no financial capacity to handle this work without going into large debt again.
Until we see evidence of this plan, including timings etc, it can’t be sold in the short term.
The club needs to fix football abd then start turning its attention to its business again which is drifting along without obvious direction, ambition and boldness. And this is preventing the timeline on the sake of pokies.
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The point is, no one is arguing that you will cut them off tomorrow. People are arguing that just doing nothing isn’t the answer. Getting a plan together to make the club run profitability without poker machines is the start, but it actually needs progress and commitment
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The most likely and upcoming trigger for change would be the Windy Hill redevelopment, because the pokies are NOT intended to remain there. If you have to relocate half (?) of your stash, that seems an ideal time to sell the rights to at least that portion.
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I’m another member of NoPE and have been meaning to check in on this thread but have been pulled in a few different directions yesterday and today, so I’ll respond to some specific posts more over the weekend.
A couple of points worth making now though in response to some of the arguments people have presented against Essendon giving up their pokies:
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Essendon’s venues operate under a club license. These can’t be transferred to pub licensees, only other clubs (sporting, social, etc). So the argument about profits instead going to big corporations if we exited isn’t relevant.
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NoPE’s position is that Essendon should commit to a timely exit. That means setting out a plan for developing new revenue streams and earmarking that revenue to be used to replace what the pokies bring in. It is not on us to make that plan for the club. They have the industry knowledge, resources & expertise to develop that alternative.
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ah i didn’t know this was a thing. this has always been in my mind the #1 reason to not ditch them.
i’ve learned something today. thanks.
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Well said, I agree. The club just has to commit to building a strategic plan, putting timelines in it, then executing the plan. The Board have dithered on ‘non core business’ opportunities for a decade with no focus. They’ve failed in this respect to deliver. It’s time they step up to the plate and get on with it.
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On the $10m revenue that’s only revenue not profit.
From the 2022 annual report Note 3.
Venue revenue food and drink - $4m
Venue revenue other - $9.2m
Venue expenses - ($9.9m)
So venue profit is $3.3m, still significant but not $10m. It’s not totally transparent how the pokies impacts the Venue line items but I assume it’s the majority.
It’s the cash flow generated thats not to be dismissed. Footy club expenses / salad airs are year round. Football revenue isn’t. Venue operations (gambling, catering, bar, events) are a 52 week a year cash flow source that’s necessary to ensure significant expenses can be paid out without cash flow problems due to calendar timings of revenue / expenses.