Commission grants application for additional 10 pokies at Langwarrin Hotel

The City of Frankston prepared a submission in opposition to the application. On 24 March 2016, the Victorian Commission for Gambling and Liquor Regulation granted the application.

The approval is subject to a condition that the hotel donates $10,000 in community contributions to Theodora House each year. This is in addition to the $80,000 annual contributions the hotel makes to local community and sporting groups.

The commission found there is likely to be a minor net positive social and economic impact, and therefore no net detriment.

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

Investment in children's play area was given low weight.Additional gaming expenditure not associated with problem gambling was given marginal weight.Additional employment was given marginal weight.Community contributions were given marginal weight

• A total of $1 million will be spent on renovations, with the applicant indicating that $300,000 will be spent on improvements irrespective of the outcome of the application. There will be little economic benefit, with the main benefits relating to social benefits.
• Only a small proportion of the additional total expenditure is estimated to be new expenditure.
• Increased gaming competition was given marginal weight.
  • Five of the additional 10 machines will come from the Riviera Hotel, another gaming venue in the City of Frankston.
• The equivalent of 3.2 new full-time positions will be created at the premises, with 1.5 of these created in the gaming room specifically. Evidence was provided that changes to the hours of operation and role changes, due to extension of the bistro, will allow for 'sharing' of staff between areas/locations at the hotel.
• The additional community contribution to Theodora House of $10,000 a year providing a relatively small contribution to the economy.

Lower spending at other gaming venues in the municipality was given no weightThe possibility of an increased economic impact on problem gambling was given marginal weight.In making this determination, the commission weighed the following social benefits and disbenefits.

• Given the distance from other venues and the 'destination' nature of the hotel, the expected impact on other venues is likely to be low.
• The commission considered there is a disbenefit, uncertain in size, in higher costs to health and service providers and lower spending on local goods and services. However, mitigating factors included:
  • the premises is a destination venue
  • the patron profile is primarily from Langwarrin
  • the premises has a good gaming room layout and strong responsible service of gaming procedures.

Increase opportunities for recreational gaming (i.e. non-problem gambling) was given marginal weight.Additional employment was given marginal weight.The expansion of the children's play area was given moderate weight.Contributions to Theodora House was given low weight.

• While the number of additional electronic gaming machines is small (10), the relative isolation of the hotel results in much greater opportunities for additional recreational gaming than if there were a large number of nearby venues. The hotel will also be able to better cater for the overall increase in demand that is already present and may occur at the premises.
• While 1.5 full-time positions will be created in the gaming room, it is likely to be transferred employment from the local area.
• An expanded children's play area would be a benefit to the local community given its current popularity with families. Creating separate spaces for all age groups will allow children of all ages to utilise the facility, which will in turn encourage more families to make use of the hotel during the day. A benefit to the community will be to have access to a children's play facility irrespective of weather conditions.
• While the economic impact will likely be marginal (given the relatively small amount pledged), the social impact of the contributions will be significant as Theodora House has not previously had a dedicated funding stream to assist in the ongoing operation and success of the organisation.

Problem gambling was given low weight.Impact on community health/connectedness was given marginal weight.

• As outlined above in economic disbenefits, mitigating factors present at the hotel will reduce the risk of problem gambling resulting from an increase in gaming machines.
• The commission accepted this as a concern of Frankston Council, but could not accept that the consequence of the application will necessarily be an increase in the consumption of liquor and gaming products at the hotel. Mitigating factors present at the hotel will also reduce the impact on community health and connectedness.

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