Poker machines deal 'anti-competitive'

11:35 AEDT Wed Dec 22 2004


The State Government's exclusive deal with Federal Hotels on poker machines has been found to be anti-competitive, reports The Mercury.

The National Competition Council said Tasmania did not comply with Competition Principles Agreement obligations in relation to gaming machines, casinos and keno.

In May 2003, the Government said it intended to extend the exclusive licence with Federal Hotels until 2018. It also announced a cap of 3680 on gaming machines.

"While the council can see benefits in the statewide cap, it has reservations as to whether, in the absence of exclusivity, Federal Hotels would have expanded machine numbers to the extent claimed," the NCC report said.

"The council considers that the principal beneficiaries from competition are likely to be venue owners and consumers, although the extent of their gains is unlikely to be substantial. Without a competitive tender for the right to operate machines it is difficult for Tasmania to demonstrate that its current arrangements maximise government revenue from the gaming machine licences on issue."

Finance Minister Jim Cox said the NCC did not consider the restriction in the gaming sector to be a problem.

"The NCC report shows that Tasmania is at the forefront of socially responsible competition reform," Mr Cox said.