17 March 2016

Will Hodgman, Premier

Peter Gutwein, Treasurer

Government outlines a new gaming paradigm for Tasmania

Today the Government announced a new way forward for gaming in Tasmania, which makes a clean break with the secretive ways of the past.

Over the past year there has been significant public interest in the future of the state's gaming licence post 2023.

While the ultimate decision on the future of gaming isn’t required until the trigger point in 2019, the Government has outlined the principles guiding the Government’s thinking and also our policy positions on key structural elements of the gaming sector from 2023 onwards.

Guiding Principles

1. Gambling is a lawful form of entertainment for many Tasmanians, and a wide range of gaming products should be available to consumers that are fair, and which provide an acceptable average return to players.
2. The regulation of the gaming industry should be designed to create a sustainable industry with the highest standards of probity and harm minimisation.
3. The returns from the gaming industry should be shared appropriately among the industry, players and the Government representing the community.
4. The placement or relocation of EGMs into new venues outside of the casino environment should not be solely determined by the industry and the public interest should be taken into account.
5. The duration of a gaming licence should be commensurate with, among other things, the level of investment necessary to underpin the delivery of the gaming operation.

Policy Position

Consistent with these five guiding principles, the Government has determined a set of policy positions in relation to the structural arrangements for casino gaming operations and hotel and club EGM gaming post 2023.

1. The rights to conduct gaming in the existing casinos including EGMs and table gaming and the operation of keno are to remain with the Federal Group.
2. The tax rates and license fees for casino gaming and keno are to be reviewed against the broader Australian market with a view to ensuring that returns to players, the licensed entity and the community via the Government are appropriate.
3. Given the emergence of the MONA proposal, the Government’s position is that limited new “high roller, non-residential” casino licenses should be available in Tasmania in addition to the Federal Group’s two casinos, (one in the south, one in the north) with David Walsh given first option to apply for a licence given his preannounced intention to do so.
4. The rights to operate EGMs in pubs and clubs post 2023 will be allocated and priced by a market-based mechanism, such as a tender.
5. The current statewide EGM cap of 3680 will be decreased to 3530 machines in 2023 –a reduction of 150 machines.
6. The tax rate and licence fees for EGMs will be reviewed with a view to ensuring that returns to players, the licensed entity (or entities), venues and the community via the Government are appropriate and reflective of the broader Australian market and that the returns to hotels and clubs, and the community, be should be at least in the same position they are today.
7. The Community Support Levy, which is applied to EGM activity in hotels and clubs, will be reviewed to ensure that it is set at an appropriate level delivering outcomes that are in the best interest and meeting the requirements of the community.
8. The location of EGMs will be subject to a new public interest test to be applied by the Tasmanian Liquor and Gaming Commission.  This will give local communities more of a voice in determining the future location of EGMs in their community.  This new test will commence effective immediately for new machines and new locations only, it will not apply to pre-existing machines and locations.

Public Process to Inform Structural Arrangements

The processes that led to the development of the earlier Deeds caused concern in the community and cast a shadow over the appropriateness of structural arrangements.  The Government does not want a repeat of this outcome.  There needs to be a fully transparent public consultation process that enables interested Tasmanians, whether directly involved in the sector or not, to have their say on the future structure of the gaming sector post 2023, with the Government’s policy position as the starting point.

Accordingly, the Government proposes that a Joint Parliamentary Committee be established (three House of Assembly members, one from each party; three independent members from the Legislative Council) to undertake this public consultation process and report by the end of the year.

While ultimately the Parliament will decide the terms of reference, The Government’s view is that these would include:

1. Consideration of the Government’s policy position outlined today;
2. An assessment of options on how market-based mechanisms, such as a tender, to operate EGMs in hotels and clubs could be framed;
3. Consideration of future taxation and licensing arrangements, informed by those in other jurisdictions;
4. A review of harm minimisation measures and their effectiveness, including the Community Support Levy;
5. Consideration of the duration and term of licences for the various gaming activities post 2023; and
6. Any other relevant matters.

The Government has developed a number of clear policy positions that we want the community to have the opportunity to comment on in a transparent and open way. 

We are bringing this process forward now to provide certainty to the community before the 2019 decision point.

Our very firm view is that this policy position and the open and transparent process outlined today is the right way forward and in the best interests of the State.

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