Court backs Government limit on pokie-hosting cash

The Court of Appeal has endorsed Government limits on how much pubs should be paid to host poker machines.

In a decision released yesterday the court dismissed an appeal by gaming machine society Pub Charity, which has about 3000 gaming machines at 335 sites, against Department of Internal Affairs rules over how much pubs should get for gaming machine expenses.

The case revolved around Pub Charity's attempt to get dispensation from the rules.

Expenses of up to $150 per machine per week are authorised by the rules, but Pub Charity had sought dispensations of $250 per machine per week for some sites.

The department's gaming and censorship regulation director, Keith Manch, said in effect Pub Charity was claiming it would cost a pub $234,000 a year to operate 18 gaming machines on its behalf.

"Consultants and accountants for the department came to the conclusion that it costs much less," he said.

Mr Manch said the Appeal Court decision was important for the whole community as it meant a greater share of gambling profits should go to the community.

In the year to June 30, gambling operators made $1 billion profits on machines in pubs and clubs.

How much of that money should be paid to pubs had often been a contentious issue, and Mr Manch said the court's decision strongly supported the principles on which new rules introduced by the department were based.

The new rules took effect on December 1 and restrict the amount of money pubs get for hosting gaming machines, which are owned by gaming machine societies.

The Charity Gaming Association recently warned the new rules - and other rules coming into effect on December 1, 2005 - would cut funding available for distribution to charities by $28 million to $48 million annually.

But Mr Manch said that together, pubs and gaming societies received $264 million a year to cover expenses and that was felt to cover costs.

Pub Charity chief executive Ian Bray could not be contacted.