Commission grants application for additional 5 pokies at Horsham Sports & Community Club

On 26 March 2018, the Victorian Commission for Gambling and Liquor Regulation heard an application from Horsham Sports & Community Club Ltd to increase the number of pokies at the Horsham Sports & Community Club in the Rural City of Horsham from 78 to 83.

The Rural City of Horsham did not oppose the application.

On 23 April 2018, the commission granted the application.

The commission found the social and economic impact to the well-being of the Horsham community if the application was approved will be neutral, and hence the 'no net detriment' test was met.

The commission's approval is subject to the following conditions:

• Horsham Sports & Community Club must make cash contributions of not less than $90,000 each year, up to 30 June 2022
• the contributions made must be distributed each year to not-for-profit community and sporting organisations in the Rural City of Horsham.

In making this determination, the commission weighed the following economic impact benefits and disbenefits.

Benefits

Expenditure on community contributions was given positive impact, with no to marginal weight.Short term additional employment was given positive impact, with no weight.

• The commission considered additional community contributions can have a positive impact. However, to be regarded as a benefit associated with the application, it is necessary to show the additional contributions will result as a consequence of the application. The commission noted the minimum annual community contributions is comparatively smaller to previous donation amounts the club has recently demonstrated it is capable of paying. Therefore, an increase in community contributions arising from the additional five machines is not entirely clear.

• While there will be short term employment benefits with the installation of the additional five pokies at the club, the commission noted there was a lack of evidence that this would benefit employment in the Rural City of Horsham.

Gaming expenditure not associated with problem gambling was given positive impact, with no to marginal weight.

• The portion of new expenditure not attributable to problem gambling is an economic benefit. The commission considered that, while the majority of new expenditure will not be associated with problem gambling, the estimated levels of new expenditure are relatively small.

Disbenefits

Gaming expenditure associated with problem gambling was given negative impact, with marginal weight.

• The portion of new expenditure attributable to problem gambling is an economic disbenefit. The SEIFA indices indicate a mixed socio-economic profile of the catchment area, including some residents having a level of socio-economic disadvantage and financial vulnerability that would make them more susceptible to gambling-related harms. However, any impact is likely to be mitigated by the club's RSG practices and the current level of exposure to pokies in the Horsham community.

In making this determination, the commission weighed the following social impact benefits and disbenefits.

Benefits

Increased gaming opportunities for those who enjoy gaming was given positive impact, with no to marginal weight.
Reducing the probability of a new gaming venue was given positive impact, with no weight.
Social benefit derived from increased community contributions was given positive impact, with no to marginal weight.

• The commission considered granting the application will better serve the needs of gaming patrons by providing additional opportunities for those who choose to play pokies. However, there are already 148 pokies in Horsham, including those at two other gaming venues.
• The commission determined there is no evidence, beyond mere speculation, that another venue would seek to use some or all of the five EGM entitlements available in the Rural City of Horsham.
• The commission accepted that the positive social impact of community contributions is by improving the social fabric of the community. The commission noted that the proposed annual community contributions for the purposes of the conditional approval is comparatively smaller than previous donation amounts the club has recently demonstrated it is capable of paying. Therefore, the increase in community contributions arising from the additional five machines is not entirely clear.

Disbenefits

Possibility of a increased incidence and potential impact of problem gambling on the community (including family violence) was given negative impact, with marginal weight.

• The commission considered that wherever accessibility to pokies is increased, there is a risk of an increase in problem gambling, which leads to other costs (such as adverse health outcomes, family breakdowns and other social costs). While the commission is satisfied there is a disbenefit in the potential for increased risk of problem gambling, it considers the risk is likely to be mitigated by the existing access to 78 pokies at the club, the close proximity to two other pokies venues in Horsham, the range of other entertainment options at the club and the club's RSG practices.

Read the gaming decision – EGM increase – Horsham Sports & Community Club Ltd

See our infographic on the Rural City of Horsham and compare its pokies statistics with other councils across Victoria.