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Gaming machines close to secured

30 Oct, 2009 08:07 AM
Stawell Harness Racing Club is one step closer to securing gaming machine entitlements after registration for next year's gaming auction opened this week.

The club has been fighting to save the Trackside Tabaret since the State Government announced key reforms to the gaming industry in April last year.

The original changes proposed by the government affected the ownership of gaming machines, severely threatening the viability of club.

However, subsequent alterations announced in June saved the club from closure by guaranteeing them rights to their existing machines.

The new reforms give existing clubs the opportunity to purchase a limited number of gaming machine entitlements ahead of next year's auction by participating in the Pre-Auction Club.

Registration for the gaming machine entitlement auction and the Pre-Auction Club opened on Monday.

Stawell Harness Racing Club Manager Lisa McIlvride said the club is relieved it does not have to go through the auction process.

``We chose not to participate in the auction because it doesn't guarantee we will get any machines. It would be taking a bit of a risk,'' she said,

``We are buying machines in the pre-auction which allows us to purchase entitlements at a price.''

The Pre-Auction Club is only available to clubs with a venue operator's licence that were operating gaming machines in a club on June 4, 2009.

It provides an option for the clubs to buy up to a maximum of 40 entitlements, or the number of gaming machines that were operating in their club venue on June 4 this year.

Mrs McIlvride said the entitlements were allocated according to last year's turnover.

``We are entitled to 30 machines,'' she said.

``We can purchase the first 20 at 180 per cent and the last 10 at 200 per cent of last year's turnover.

``That works out at $1.4 million.''

After registering for the Pre-Auction, the Harness Racing Club is expecting to receive an offer in the next week.

They will then be required to accept the offer and put down a five percent deposit to secure the entitlements to 30 machines.

`` The club is in a good position to do that,'' Mrs McIlvride said.

Harness Racing Club staff have been attending seminars over the past few months to learn how to operate the gaming facilities themselves.

``It's all a brand new world for us,'' Mrs McIlvride said.

``We have been with Tabcorp since day one and everything has been provided for us. Now we need to educate ourselves.''

The club has elected not to employ consultants to continue the services provided by Tabcorp, preferring to manage the facilities themselves.

``We decided to do it ourselves and keep the money in the community,'' Ms McIlvride said.

The Town Hall Hotel is yet to register for the gaming entitlement auction or the Pre-Auction Club.

Publican David Stanes said the situation was `changing week to week' and he was waiting to receive more information from the government.

Mr Stanes said he hoped to make a decision after attending an information session today.

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