Is Casino Canberra’s bid for pokies a done deal? No, but 'it should be'
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Is Casino Canberra’s bid for pokies a done deal? No, but 'it should be'

Aquis Entertainment (the ASX-listed owner of Casino Canberra) has been subjected to significant criticism and mud-slinging in recent times from a clubs lobby intent on spreading fear (Is the casino bid for pokies a done deal?", October 11, p17). Until now, I have chosen not to respond to ClubsACT's campaign, and rather let it show itself to be what it is – a negative and spiteful attempt to protect a monopoly over poker machines.

These conspiracy theorists, and their paid advocates in the Canberra Community Voters party, set up by Raiders Group lobbyist Richard Farmer, are intent on maintaining the status quo on a narrow issue at the expense of continuing to build the vibrancy of our national capital. A frightening indictment on our future if it is allowed to play out.

The owner of Casino Canberra "has been subjected to significant criticism and mud-slinging".

The owner of Casino Canberra "has been subjected to significant criticism and mud-slinging". Credit:Jamila Toderas

Canberra's continued modernisation and the much needed revitalisation of our CBD hinges on the handling of issues such as these. We support the introduction of new and diverse streams of revenue to the ACT to build growth and resilience across the economy or we allow the outdated club model to continue to demand relief from government (of either colour). Despite what the lobbyists would have us believe, the truth is that well-managed, modern clubs and our integrated resort concept can, and should, successfully coexist.

The economic benefits of the Aquis proposal are big: $541 millon of growth in GTP to 2030. Government doesn't have to dip into its increasingly constrained coffers: the development is on private land, and is to be run by an existing operator.

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The regulatory reform required to make it happen is small. Two hundred, or just four per cent of the total number of gaming machines in the ACT market, to be bought from existing club stocks through the existing trading scheme.

When put in perspective, the reallocation of 200 gaming machines barely rates a mention. The Reef Casino in Cairns operates in excess of 500 machines in a similar catchment to the ACT, but with half the population.

In Canberra, 200 machines is fewer than the number currently at Gungahlin Lakes, or the Southern Cross Club, or Raiders Gungahlin, or any number of other single club venues. And the machines will be in the city – the catchment area with the least number of machines anywhere in the ACT.

There is no evidence that allowing four per cent of machines into the casino will cause any club to close, or any reduction in the amount of community contributions that will flow from their operation.

In fact, under the model we are proposing, funds from the purchase of machines will immediately go to clubs who have struggled for years and are crying out to sell. That's 267 machines that are removed from the market instantly (67 permanently forfeited). The capital from those machine sales can be deployed in those clubs in the short term, while we spend a number of years constructing our precinct – a three-plus-year transition.

I am willing to bet the house that a number of clubs will close during this time. Not from competitive pressures, or a threat to their business posed by a casino, or any new regulatory burden – but because their current business models are not sustainable. This in itself is not an issue for government or voters to solve.

Aquis took on a significantly loss-making asset when we bought the casino in 2014. In doing so, we ensured the security of over 220 jobs, and a modest stream of taxation revenue to the territory. Already we have grown our workforce by 22 per cent, doubled taxation revenue, and spent $14 million refurbishing the existing premises.

We make well above the minimum contribution to harm minimisation and counselling support services, and not a single dollar has flowed offshore in the two years we have been operating. These metrics will continue to improve into the future, ensuring the government has a strong and sustainable taxation revenue stream with which to fund community assets and other policy priorities.

In his erroneous article earlier this week, Simon Hawkins said that Clubs ACT had made numerous FOI requests to the government for information about any "arrangement" between Aquis and the government relating to poker machines or the Brumbies, stating that the government had "failed" to deliver any information.

There is a very good reason for that. There is none. No arrangement, no secret deals.

Every interaction we have had with the government has been transparent, professional and the result of good management. To acquire the casino we undertook a multimillion-dollar, 12-month-long slog that required delving into the personal and business lives of all involved. Mr Hawkins, Mr Farmer and a number of other club operators, would shiver in their shoes at the thought of such a detailed and invasive process.

As for the Brumbies sponsorship, it is one of our proudest accomplishments, and is cheapened by the insulting allegation that it was a set-up.

We are not "exiting" dependent upon any legislation – we're passionate about keeping the Brumbies in Canberra. The Brumbies do not have the peace of mind of relying upon poker machine income to prop up their high performance team like the Raiders do, and from Mr Hawkins's comfortable position, suggesting that the government should be ultimately responsible for their financial viability is disingenuous.

To be afraid of a publicly listed investor wanting to inject $300 million into an economy that is in deficit, with the aim of bringing a wave of new tourism dollars to the ACT, is a small-town mindset borne out of decades of monopolistic comfort.

Investment in Canberra equals confidence. Regardless of Andrew Barr's, or mine, or anyone else's personal preference in relation to gambling, today's big-spending tourists demand the kind of luxury product we are proposing. If the ACT wants to compete, it has to get into the game. New money flowing into the territory from an expanded tourism base will be a catalyst for solid growth – a project like the one we have proposed is the missing piece of the tourism puzzle, perfectly complementing our amazing natural and cultural attractions.

Canberra is on the precipice of transforming into one of the world's best small cities. Our current government is focused on bringing about this change for the benefit of all Canberrans. They've generated great momentum and are making brave choices to ensure that this vision is achieved – even when those choices are unpopular. This style of leadership is sorely lacking from politics anywhere else in Australia.

The issue at this election is not about clubs, or poker machines, or casinos. It's about ensuring that the exciting progress we as a city have made over recent years continues. That's something none of us should be afraid of.

Jessica Mellor is the chief executive officer of Aquis Entertainment.