DATE 2016
Honourable Annastacia Palaszczuk MP
Premier and Minister for the Arts
Member forInala
PO Box 15185
CITY EAST QLD 4002
Dear Premier,
Re: Impact of NEW casino on <INSERT CLUB NAME>
I write in relation to the proposed second casino on the Gold Coast, and the associated proposal by ASF Consortium to commence significant construction on the land between Sea World and the Gold Coast Fishermen’s Co-operative.
As you may be aware, Clubs Queensland recently released the Synergies Economic Consulting report, titled ‘the impact of new casinos on Queensland community clubs’.
This independent report comprehensively outlines the social and economic impacts of the three proposed Integrated Resort Developments (IRDs), which includes casinos. Conservatively and alarmingly, 63 community Queensland clubs (30 here on the Gold Coast) are forecast to experience serious financial risk with an estimated total annual gaming revenue loss of $100 million to casinos. In addition to this, there is estimated to be a $75 million reduction annually in taxes foregone to the State and community contributions to local communities – whether that be children’s sport, other not for profit community groups, assistance for returned service personnel or much needed social infrastructure.
On the Gold Coast specifically, the number of community clubs in the ‘high risk of financial failure category’ equates to 44% of the 67 licensed community clubs that currently have a gaming offer, and is forecast to displace approximately half a million club members and volunteers. What this means for Gold Coast locals is – their local club and the services we provide may genuinely disappear.
Experience from NSW highlights that only 9% of all visitors to the Star Casino in Sydney are from overseas, with 65% of all visits being local residents. This fact was further confirmed recently with Crown advising the media and their shareholders that just 12% of all visits to their Australian casinos offer is from China, which many (including ASF) are conveniently suggesting are the majority of their custom or will be for any new offer. With Australian casinos focusing on locals to sustain operations, the report confirms that profitability across the community club sector is projected to fall by almost 25% after construction is completed.
Further, NSW has a population of 7.544 million with just one casino and an additional one planned for construction, which will notably be table games only. Victoria also has only one casino with a population of 5.791 million. Queenslandhowever, has the smallest population on the eastern seaboard of 4.691 million, and we already host four casinos across the state, indicating Queensland is already very well serviced when to comes to casinos. Alarmingly however for our industry, there are an additional two IRD licenses pending.
Community clubs also have to compete on an un-level playing field in the gaming space, i.e. given concessions casinos have in areas including maximum bet, return to player, trading hours, machine offers, technology platforms, smoking and more.Thus adding more Queensland casinos to the mix only exacerbates the inequality and inability of community clubs to compete and remain relevant, especially given the market saturation of the gaming industry and the large number of licensed casinos per capita when compared to other jurisdictions.
The Synergies Economic Consulting reportconfirms thatjust a 20% reduction in gaming revenue at community clubs will reduce profitability and therefore surpluses reinvested into the community to zero. That will leave many community clubs unable to survive and certainly unable to supplement other not-for-profit community groups or community infrastructure, meaning the community will be the biggest losers if this proposed IRD/casino development proceeds on the Gold Coast.
In summary, I reiterate that the IRD/casino threat is real and will significantly and negatively affect our club, our local community and our members.As a concerned local Gold Coast business, I call on you, the Premier of Queensland to declare the proposed ASF development on the Spit a NO GO, and to also confirm there will not be a second casino in any location on the Gold Coast under your government, given the confirmed impact of additional IRD gambling offers.
Please don’t be seduced by the allure of a new development (underpinned by way of a false business case in terms of patronage), particularly given the known negative impact that will impact broadly impact the lives of young and old across our Gold Coast communities.
Warm regards
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