An anti-gambling lobby group has warned of the “conflicting interest” of Bendigo council acting as a guarantor for a multi-million dollar loan to Bendigo Stadium Limited, given their public opposition to gaming machines.
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During a tense vote in 2016, the former Bendigo council agreed to be the fallback for a $11 million loan used to fund the Bendigo Stadium upgrade, and the current guarantee exposure sits at $12.2 million.
The decision divided some councillors with Lisa Ruffell saying at the time: “I’m concerned that their funding all comes down to gambling. I have deep reservations, but I see no other option but to support it.”
Bendigo Stadium Limited has since lodged an application to install 44 poker machines at a White Hills hotel, which the current crop of councillors voted to not support in June, and was ultimately rejected by the Victorian Commission for Gambling and Liquor Regulation in August.
Bendigo Stadium Limited will appeal that decision at a Victorian Civil and Administrative Tribunal hearing in May.
The Alliance for Gambling Reform spokesperson Stephen Mayne said the situation was a “conflicting interest” for the City of Greater Bendigo.
“It’s difficult because the council as planning authority has a financial stake in the planning outcome,” he said.
“There's a lesson here about councils not leaving themselves dependent on poker machine revenue for the provision of community facilities.”
The construction of a new three-court arena capable of seating 4000 people is expected to cost $22 million, with the council pitching in $2 million.
Despite the perceived conflict, Mr Mayne lauded the current council’s anti poker machine stance.
“We admire the fact they have taken the principled position of giving the harm caused by the poker machines a higher priority than the financial argument,” he said.
Mr Mayne added Bendigo Stadium should be “more respectful” of Bendigo council’s view on poker machines, given the city is their financial guarantor.
New council, new stance
Councillor Jennifer Alden, who has been vocal on the public health disbenefits of gaming machines, said pokies was part of the organisation’s business model.
“If that (loan guarantor) was to come before us (council) again there's a possibility there would be a different type of discussion,” she said.
If that (loan guarantor) was to come before us (council) again there's a possibility there would be a different type of discussion
- Councillor Jennifer Alden
Cr Alden said the current council was different to its predecessors, but suggested there was no perception within council that there's a conflict with the city acting as a loan guarantor for Bendigo Stadium Limited and it was “not a decision that's going to be changed in the near future”.
Punters spent $10.85 million in Bendigo Stadium Limited’s three venues – Bendigo Stadium, The Borough Club and St Arnaud Sporting Club – which have a combined 180 gaming machines, in the 2016-17 financial year.
Bendigo mayor Margaret O’Rourke said: “It has always been understood that electronic gaming machines are part of Bendigo Stadium’s business model and council will not reconsider the decision to serve as guarantor for its loan.”
“Any gaming licence application to the VCGLR or associated planning application to council is considered on a case-by-case basis. Regarding the Wellington Hotel, council’s key concern is that electronic gaming machines will become more easily available in a part of our community that does not already have them in close proximity, as there are currently no machines in the city’s northern corridor.”
Bendigo Stadium Limited chief executive officer Nathan O’Neill said the company’s financials will be disclosed in the VCAT application in due course.
VCAT hearing looms
Although publicly opposed to the application for 44 poker machines at the White Hills hotel, Bendigo council has previously adopted a non-contentious legal stance to the plan, preferring, it says, to use ratepayers money in a more sensible manner.
The council opted against sending lawyers to a VCGLR hearing in Melbourne in July, on the premise their chances of success weren’t particularly high.
Mayor Margaret O’Rourke said at the time: “There is a feeling that the rate of success is not that great.”
The council will have legal representation at the VCAT hearing after the tribunal merged two appeals by Bendigo Stadium Limited – one on the council’s decision to refuse a planning application for the White Hills hotel, and the other to appeal the VCGLR’s decision.
The council confirmed they would not have sent lawyers to the VCGLR part of the VCAT appeal.
The city’s director of strategy and growth Bernie O’Sullivan said: “As the city will have legal to defend its decision not to grant a planning application it will also talk to the negative economic and social impacts council believes additional gaming machines in the area would have.”
New pokies policy
Bendigo council is in the midst of updating a decade-old electronic gaming machine policy amid a 25-year freeze on poker machine numbers across Victoria, introduced by the state government last year.
Bendigo has 618 active poker machines across 10 venues with the region’s cap set at 870 machines.