Review of flawed community grants scheme applauded
2 July 2024
The State Government will review the Victorian Community Benefits Scheme after analysis released by The Alliance revealed clubs across the state were granting themselves an average of 77% of all the ‘community’ grants’ they made.
New analysis released by the Alliance for Gambling Reform shows that of all the grants provided by Victorian clubs with poker machines last financial year more than 77% (or $241.7m out of $311.6m) were spent on funding their own operations including staff wages, staff meals, beer gas, venue decorations, security, pay TV subscriptions, accounting, legal fees, council rates, pest control, trophies and prizes for members.
The Victorian Government has confirmed to The Alliance that a review of the scheme will be launched but there are as yet no details on the nature and timing of the review.
“The Alliance applauds the Allan Government for taking such swift action on the back of damning evidence of the scheme that highlighted just how little benefit the community received from clubs,” Interim CEO, Martin Thomas, said.
“Across Victoria last financial year people lost more than $3b to poker machines. Clubs with poker machines reap extraordinary profits on the back of the community harm these machines wreak and now we find out even the fraction of income they ‘give back’ is also being rorted.”
Mr Thomas said the scheme was clearly not working as it had intended and it was time it was scrapped. He said The Alliance looked forward to working with the Victorian Government to ensure a better outcomes for communities across Victoria.
Under the Victorian Community Benefits Scheme clubs (but not hotels) can claim a tax deduction of 8.33% by verifying that they have provided at least 8.33% of their net gaming revenue back to the community in the forms prescribed under the Scheme which separates the benefits into Class A, B and C. Class B benefits are broadly defined as operating costs along with capital expenditure.
“The results show that of the 230 clubs participating in the scheme in 2022/23 - including many RSLs, golf clubs, country clubs and bowls clubs - they granted themselves and their members more than 77% of these benefits and are getting a tax subsidy to boot,” The Alliance for Gambling Reform’s Interim CEO, Martin Thomas, said.
Mr Thomas said poker machine reform was consistently resisted by the industry which cited the community benefit that clubs offer through this grants scheme.
“The reality is the damage they are causing our communities far outweighs any good they are doing.”
Mr Thomas said there still needed to be more progress on the reform agenda announced by the Victorian Government almost 12 months ago now as well as a commitment to implement the recommendations of the Public Accounts and Estimates Committee Inquiry, held last year which investigated the way gambling was regulated in Victoria and what changes were needed to reduce harm from gambling.
Martin Thomas is available for interview on 0477 340 704