|
Over the past few weeks I have had the opportunity to meet with various venue operators about gaming machines and their place in the hospitality mix. It is clear that venue operators are giving a lot of thought to gaming machines and their thinking on gaming machines is different depending on their particular circumstances and location.
Those in high profile CBD areas are thinking very hard about the value of having gaming machines at all. The value of alternative commercial or hospitality activities is increasingly looking more attractive than the venue expense payments currently available, added to the inherent hassle and responsibility of having gaming machines.
The second category are high performing 18-machine sites who are committed to gaming as an important part of their entertainment mix but are extremely frustrated at the level of revenue available to them in relation to the work involved in particular the risks and responsibilities. This group are thinking very hard as to how they can get the best match between actual operating hours and costs and what the maximum formula can deliver. This group is extremely exasperated and angry at the way they are being treated.
The third group are mid-range sites where gaming is an important part of the business but they have been less affected by the venue expenses formula. This group are more focused on the hospitality aspects of their business and trying to break even in a competitive environment. Gaming machines are now getting less focus and the operators are thinking about whether the responsibilities and risks are justified.
The last group is the small sites where they have traditionally had older machines and received little in the way of venue expenses. This group is thinking that it won’t be long before their machines are gone, and are thinking about other ways in which they can assist their community with fund-raising. They are also fast reaching the conclusion that it is very sad and unnecessary that bureaucracy and regulations have led to this outcome.
All the groups have a collective sense of frustration at the complexity and bureaucracy of compliance and the lack of real practicality in its application. Gaming venue operators are giving a great deal of consideration to the vexed issue of gaming machines and from the feedback I am receiving, not much of it is very positive.
Bruce H Robertson Chief Executive Hospitality Association of NZ 13 April 2006
Ref: h:]bhr6r6046.doc |