Commission grants application for 29 pokies at Valley Inn Hotel in Geelong

The City of Greater Geelong prepared a submission in opposition to the application. On 23 March 2016, the Victorian Commission for Gambling and Liquor Regulation granted the application.

The approval is subject to a condition that the hotel makes $30,000 in community contributions each year to not-for-profit community groups and sporting organisations providing services and facilities to residents in the City of Greater Geelong.

The commission found there is likely to be a minor net positive social and economic impact if the application were approved, and therefore no net detriment to the community.

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

Expenditure on capital works was given low weight.Short-term employment creation was given no weight.Long-term employment creation was given low weight.Complementary expenditure was given no weight.Community contributions of $30,000 a year was given low weight.Gaming expenditure not associated with problem gambling was given low weight.Increased gaming competition in the City of Greater Geelong was given marginal weight.

• While there is intended to be a sizeable expenditure on capital works, there is some uncertainty as to how much of this expenditure will be retained in Greater Geelong.
• The value of this benefit has been captured in the expenditure on capital works considered above.
• The application will result in the creation of the equivalent of seven new full-time positions at the Valley Inn Hotel in its gaming operations, however there is likely to be transferred employment from the Barwon Heads Hotel. The additional employment is positive but uncertain.
• It was not possible to assess the impact of the proposed refurbishment of the Valley Inn Hotel as evidence is not available of current performance
• The proposed community contributions represent an increase of approximately $20,000 a year on the amount currently being given by the applicant as venue operator of the Barwon Heads Hotel. These contributions will result in a positive economic impact on community groups operating in South Geelong.
• The portion of new expenditure not attributable to problem gambling is an economic benefit. The Valley Inn Hotel is located in an area of low relative socio-economic disadvantage, which is anticipated to experience ongoing population growth and gentrification. While there are areas of high relative socio-economic disadvantage within 2.5 kilometres of the Hotel, residents in those communities already have access to gaming machines at closer venues.
• The application will increase gaming competition in Greater Geelong by providing an additional venue at which patrons may choose to play electronic gaming machines. There are high existing numbers of electronic gaming machines and premises in the surrounding area.

The possibility of an increased incidence and impact of problem gambling was given low weight.In making this determination, the commission weighed the following social benefits and disbenefits.

• The commission considered this to be a low risk given the low number of electronic gaming machine numbers at the venue, the level of anticipated new expenditure and the socio-economic characteristics of the community in the area surrounding the Valley Inn Hotel.

Improved facilities enabling greater access to function space was given low weight.Increased gaming opportunities for those who enjoy gaming was given low weight.Increased community contributions was given low weight.

• The introduction of electronic gaming machines at the Valley Inn Hotel will enable the applicant to renovate and improve facilities, enabling a greater range of services.
• The application will better serve the needs of gaming patrons by providing an additional venue at which they may choose to play electronic gaming machines.
• The level of community contributions and the impact on local community organisations was considered to be a small social benefit.

The possibility of increased incidence and impact of problem gambling on the community was given low weight.Community attitude was given low weight.

• A proportion of total gambling expenditure at the Valley Inn Hotel will be associated with problem gambling. The area surrounding the hotel does not present as particularly vulnerable to problem gambling and the potential for an increase in problem gambling is low.
• The application will result in a venue being approved in an area that the Council's policy indicates is one of the more suitable ones for gaming activity in the City of Greater Geelong. While the electronic gaming machine density is higher than the municipal average, the closure of the Club Cats venue has reduced the extent to which it exceeds this average. There was not any community survey evidence that detailed particular concerns with this application

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