ClubsACT Annual Report 2022

CLUBS INDUSTRY EMERGES FROM COVID

The past year has been an arduous one for the ACT Clubs Industry as our members contended with the rebuilding of business in the post-COVID lock down era.

After ending 2021 looking forward to some relief from the social and business impacts of the pandemic, the industry was confronted with and has taken an active role in rebuilding the workforce and working closely with the ACT Government on a range of industry issues. It has been a demanding period for all ClubsACT members but we can be proud of how the industry has responded to this challenge.

ClubsACT Wins 2022 ACT Industry Collaboration Training Award

(photo L-R: Kate Palmer ClubsACT Operations Manager, Simon Patterson ClubsACT Board Member and Kim Marshall ClubsACT President)

Our efforts as an industry in the vocational training area were recognised recently with ClubsACT and our partners CIT, SPARK and the ACT Education Directorate winning the Industry Collaboration award at the recent 2022 ACT Training Awards for the ClubsACT Pathway Program.

Minister For Skills, Chris Steele MLA presented the award recognising The ClubsACT Pathway Program which was designed to address skills and labour shortages in the ACT hospitality industry. The program was delivered in collaboration with the ACT Education Directorate, SPARK and ClubsACT. Delivered over a four-week period, the program provided training to Year 12 graduates and linked participants employment opportunities. ClubsACT worked with venues to determine work experience opportunities with the aim of transitioning participants into employment.

The program provided participants with the opportunity to gain critical skills and qualifications including Service of Alcohol, Responsible Conduct of Gambling Services and Hygienic Handling of Food. The accredited training was linked to the Certificate Ill in Hospitality to enable participants to pursue a traineeship or further study.

Nineteen participants successfully completed training, with 16 transitioning into employment following the program. Based on the program’s success, CIT, SPARK, the ACT Education Directorate and ClubsACT will continue to develop and deliver similar courses in 2022/3.

ClubsACT and our members have also been active in the development and roll-out of a school-based apprenticeship scheme with the ACT Education Directorate and a range of other vocational training and work experience projects with a range of partners working across different demographics.

ACT Government CMS Discussion Paper Proposals

Contending with proposed EGM CMS reforms became a flashpoint for the industry with a significant effort being undertaken by ClubsACT and our members to engage with the ACT Government and lobby against the Government’s preferred position.

ClubsACT working with the Canberra Labor Club Group and other industry players produced a widely supported submission that presented a unified industry position on the issue. We engaged broadly with Manufacturers, other state Club industry groups and key industry organisations such as the Gaming Technologies Association in preparing our response.

The ACT Government has agreed to establishing a Technical Working Group to progress this issue, which was a key recommendation of our submission.

ClubsACT Members remain committed to providing a range of proactive, evidence-based, harm minimisation measures to further reduce harm from gaming and working with the government to achieve their objectives.

Our Member Clubs believe that there are more effective ways to achieve the ACT Government’s aim to reduce gaming harm than the proposals identified in the Discussion Paper.

As a jurisdiction we have the opportunity to lead innovation in harm minimisation best practice. Clubs would welcome the opportunity to work constructively with the Attorney General and the ACT Government to continue to deliver a safe and sustainable gaming environment for the ACT utilising a best practice model and a public health approach.

While the Industry recognises the Government’s policy position as stated in the Parliamentary and Governing Agreement for the 10th Legislative Assembly (Parliamentary Agreement), it appears to lack an appropriate level of consideration and validation. Our Member Clubs remain frustrated that this policy is a significant shift in the ACT Government’s stated policy position and approach from July 2020, and was done with no consultation or supporting evidence.

There are legitimate concerns that the proposed policy direction is expensive, unsustainable, and short-sighted in harm reduction terms. We do not believe that this is the balance the Government was aiming for, and it is at odds with, and fundamentally undermines the Government’s diversification agenda identified for the Club Industry.

In broad terms our response to the Discussion Paper is to request a reconsideration of its basic premise, seek a return to the original provisions of the Parliamentary Agreement as a guide and to commence a proper consultative process to determine options, opportunities, costs, and timelines through a more appropriate process.

We could not endorse either the Government’s Discussion Paper or its preferred proposals given the many issues we see both in terms of the process, the detail or the options presented. This issue will remain a key priority for ClubsACT over at least the coming year.

The following recommendations were contained in this submission:

1. Establish a joint Industry/Government EGM Technical Working Group (involving Club, Manufacturer, and Government representatives) and refer the development of any proposals to it, with clearly stated aims and the objective to achieve a transitional plan and staged reform agenda by the end of 2024. The timeline for implementation should arise from this process.

2. There should be a reconsideration of the currently proposed timeframe as we believe it is technically unachievable in the current environment.

3. There should be a reconsideration of the currently proposed timeframe as it will contribute significant cost factors to any final outcome.

4. There should be a reconsideration of any proposal for the introduction of a CMS system. Due to the establishment and recurrent costs involved. The recurrent cost per month per machine is untenable for many smaller Clubs even if assessed at the low end of cost estimates and achieves little to no efficiencies to Club operations for reporting purposes.

5. There should be a reconsideration of any proposal for the introduction of a CMS system for reasons of patron privacy. The monitoring of patron’s activity through the proposed CMS model is of great concern and has potentially significant issues associated with the ACT’s status as a Human Rights jurisdiction.

6. The cost impacts should be fully investigated and verified by the proposed EGM Technical Working Group before proceeding to any legislation.

7. Any initiative proposed to reduce harm should have strong evidence to support it and a framework to measure the effectiveness.

8. Provide to the EGM Technical Working group any financial or other impact analysis already done, as was requested in our letter of 14 June to Minister Rattenbury (attached). If not already done these should be commissioned as a matter of urgency.

9. Consider an approach to bet and credit limits that accommodates an EGM buying cycle to defray costs over a period, reducing the cost implications and impact on operations and Club viability. This will require appropriate grandfathering.

10. Should the Government proceed with any proposals the Industry will require the consideration of an offset of costs associated with this transition through the waiver of existing taxes and charges.

11. Remain aligned with NSW regulatory regime to maintain current systems and infrastructure and minimise impact on the ACT Government regulatory environment.

12. Assess the community impact of any potential Club closures that may arise from this reform process.

13. Consider approaching the reforms in different phases to open up options and the potential to embrace innovation and emerging technology.

14. The ACT Government works with the industry to trial emerging technology such as a digital wallet in the ACT for its potential to meet the Government’s policy objectives before proceeding with other approaches. ClubsACT has requested that the Technical Working Group be the forum for the development of Timelines to further progress the Government agenda on their CMS reforms.

At this stage the proposed Bill closing off the jurisdiction to machines that cannot accommodate a $5.00 bet limit is expected to be introduced to the assembly in either late November or early December, we are still seeking that timeline to be abandoned and the TWG to be the forum to recommend timelines on the legislation. Should the Bill be passed prior to the end of this year, we understand it would be operative 6 months after the Assembly approves the legislation. This would effectively leave members only until possibly the end of this financial year to purchase machines that do not comply with the new standard.

Industry Plan and Diversification

The exercise of responding to the ACT Government’s CMS Proposals also highlighted the lack of a genuine industry plan for the Club sector in the ACT or even a transitional plan to address the proposed CMS introduction.

We have raised directly with Tara Cheyne MLA the Minister for Business and Better Regulation and Minister Shane Rattenbury MLA that the industry needs a forwardlooking plan from the Government that will enable growth in the sector and sustain the Government’s diversification agenda.

We have been advised that the Government preparing a paper on diversification towards a broader industry plan development in response to the lobbying from ourselves and the Labor Club Group.

Money Laundering and Casino Investigations

ClubsACT enjoys a healthy working relationship with ACT and Federal law enforcement agencies. We are not aware of any concerns in this jurisdiction that there is money laundering taking place through our members venues. We are concerned about the investigations into the operations of Casino’s in other states and some of remedies being proposed to increase compliance by their proprietors.

We believe the unique nature of our sector in the ACT and the not-for-profit nature of our members and the industry here, provides additional confidence to the legal operations of EGMS in the ACT. We are ongoingly

concerned about any efforts to introduce EGM’s into for profit venues in the ACT, as we believe this creates an environment that can foster criminal activity.

We have requested the ACT Government, noting the recent issues relating to Casino’s and money laundering concerns, consider discussions on specifically prohibiting Poker machines being allowed in for-profit venues such as the casino. This issue will remain an ongoing priority and we will continue to partner with law enforcement agencies to ensure the integrity of the industry remains at the highest standards.

Tasmanian Mandatory Pre-commitment Announcement

The Tasmanian Government has announced a state-wide player card gaming system with pre-commitment and cashless gaming.

The cards will have the government set default spending limits of $100 per day, $500 per month and $5,000 per year.

Gaming was a key issue at the last Tasmanian state election and the Tasmanian Liberal government was reelected with a strong mandate to support the industry. The announcement contradicts all previous statements made by the Tasmanian Liberal Party and is a significant departure from the position the they took to that election.

In a media statement issued, the Tasmanian Hospitality Association (THA) said that the announcement was “a slap in the face to hotel and pub customers and hardworking small and family businesses in Tasmania – many who are only just recovering after the impacts of the Covid-19 pandemic.”

The THA has accused the Tasmanian Government of backflipping on its election promise to support freedom of choice in favour of an Orwellian approach where the Government decides how Tasmanians can spend their own money.

The announcement of a mandatory pre-commitment scheme for all electronic gaming machine in Tasmania comes despite the failure of such schemes to address problem gambling in other jurisdictions. Similar schemes have previously introduced in Norway and Nova Scotia, Canada and resulted in dramatic reductions in player participation and industry revenues but failed to reduce problem gambling.

Key details of the proposed scheme have yet to be released, however the Tasmanian government has advised that implementation is expected to take between two to three years and cost tens of millions of dollars - despite the state having less than 3,400 gaming machines.

We do not have a Tasmanian member of Clubs Australia, nor are there many (if any) clubs there that have gaming machines.

The Tasmanian announcement is reminiscent of the measures adopted by former Prime Minister Julia Gillard in her agreement with Tasmanian MP Andrew Wilkie, which were strongly opposed by industry at the time.

ClubsACT will monitor this situation and liaise with our national colleagues with respect to a unified response. We will also oppose any further reforms in this direction being introduced to the ACT.

Facial Recognition Trial

We had an unanticipated flurry of media over our proposed facial recognition trial after Crikey incorrectly asserted in an article that we had already commenced a live trial in two clubs in the ACT.

After we briefed the journalists and the producers on the truth of the story the coverage was moderated substantially and became a good news story about our industry’s efforts on Harm Minimisation.

Given the inherent contradictions in the Govts approach to privacy on this subject as compared to a potential CMS system, in argument terms, we have utilised this contradiction to our benefit. We are seeking to finalise the issues with the Facial Recognition trial in the very near future so that the trial can go live.

New Members for ClubsACT

We welcome the Canberra Services Club and the Royal Military College Duntroon Golf Club into the membership of ClubsACT.

Discussions with other potential members are ongoing as part of our effort to build a strong and united club sector providing, a strong voice for our members to Government and the community.

ClubsACT People and Culture Committee

(Photo L-R: Joanne Ede ClubsAustralia Industrial, Alison Spivey MV Law, Kylee Gardner Canberra Southern Cross Club Group, Peter Teo ACT Education Directorate and Archie Tsirimokos MV Law)

ClubsACT established a People and Culture subCommittee in 2022 with a vibrant group of member representatives.

We conducted an industry employment microconference for 2022 involving a range of or partner organisations in the training and employment arena.

Sponsored by the ClubsACT People and Culture subcommittee, this event was an employment and training focused mini conference with an array of presenters spanning the spectrum of our relationships in the People and Culture area.

The micro conference saw presentations and a panel discussion and was considered a success by all who attended. We would like to thank Ginninderry Spark, Kulture Break, the ACT Education Directorate, Koomarri, Employ for Ability, MV Law and ClubsAustralia Industrial for their participation.

This was our first micro conference and will become template for our future conferences structured around single topics with key stakeholders participating.

Conclusion

(Photo: Craig Shannon CEO ClubsACT being interviewed on Facial Recognition technology)

The year 2022 has been an intense year for the ACT licensed Club Industry and ClubsACT. We can end the year with confidence that the industry is in many ways more united, in our approach to Government on key issues’ than it has been for some time.

We enjoy a fully engaged and productive relationship with the ACT Government and parties within the Legislative Assembly. We are slowly growing both our membership and our membership and we can look forward to emerging our of this year into the process of developing a longer term plan for the industry with the ACT Government.

I would like to thank the Board members of ClubsACT for their continuing enthusiasm and support for our efforts. ClubsACT President Kim Marshal and Operations Manager Kate Palmer also deserve special thanks for their commitment and ongoing very “hands on” efforts in achieving the goals of the Association.

Craig Shannon

CEO ClubsACT

29 September 2022 Dear ClubsACT members,

The current ClubsACT members electricity contract with ActewAGL will expire in December 2023. Ahead of this, ActewAGL are seeking to provide you with a market update as we begin talks with ClubsACT members for the group renewal. The current contract with ActewAGL has provided ClubsACT members with a secure price path and has safeguarded members from the recent and significant wholesale electricity price rises. The current contract was strategically locked away with ActewAGL when the market was at its lowest point in recent years. Since then, after a gradual trend upwards, we have seen considerable rises in recent months relating to wholesale electricity prices which your current contract with ActewAGL has protected you from. Please note as we enter the next contracting cycle in the 2024 period, we will be looking at higher prices compared to the last few contracting periods however we will be working closely with ActewAGL to optimise timing to market. The factors pushing wholesale electricity prices up are linked to coal plant generation outages, domestic gas supply shortfalls and hydro generating constraints linked to sharp increases in international commodity prices. There are no immediate actions to be taken as it stands. We will continue to liaise closely with the ClubsACT board and provide updates while also monitoring the market on your behalf.

Finally, the ActewAGL Energy Solutions team can assist to reduce your carbon footprint and energy costs. ActewAGL can engage with you individually to identify areas to help save and improve your energy efficiency by identifying opportunities relating to: • Solar PV and storage systems; • EV charging infrastructure and consulting; • Gas hot water to electric/lighting upgrades; • Energy efficiency advice and electrification services

Please reach out directly to the ActewAGL Business Sales team by contacting your Account Manager - Tim Langerman on 0457 170 350 or timothy.langerman@actewagl.com.au

Yours sincerely,

Craig Shannon – CEO

_____________________________________________ 16 National Circuit BARTON ACT 2600 Sean Davis – Group Manager

_____________________________________________ 40 Bunda Street, CANBERRA ACT 2600