Clubs accuse Tabcorp of bullying over pokies, by Cameron Houston - The Age - 19th July 2009

Gaming giant Tabcorp faces a second investigation by the consumer watchdog over claims it has bullied venues to sign up to its new business plan to supply and service poker machines.

In a move that will break the duopoly held by Tabcorp and Tatts Group by 2012, all Victorian pubs and clubs will be able to buy pokie entitlements from the State Government at auction next year, enabling them to freely source and purchase poker machines.

Under the new gaming framework, pokie venues must return their existing machines to Tabcorp and Tatts by 2012. They can then buy the number of machines they are entitled to from the two gaming giants, from interstate or directly from the manufacturer, Aristocrat Leisure. However, it is believed Aristocrat is unable to supply Victorian venues with 27,000 new machines by 2012, so most venues will be forced to buy their machines from Tabcorp or Tatts.

In a bid to shore up business beyond 2012, Tabcorp has allegedly been trying to pressure clubs into signing now with its new venture, Tabcorp Gaming Solutions (TGS), which will charge venues a daily rate of $39 for each of its 13,500 machines.

A TGS contract obtained by The Sunday Age reveals the offer would lock venue operators into a six-year deal in return for machines and a range of marketing and monitoring services. Several club managers claim Tabcorp has threatened to remove their poker machines if they refuse to sign up — meaning they could be left with no machines on their premises, regardless of how many entitlements they buy at auction next year.

Shepparton Club manager Rod Drill said Tabcorp told him he risked losing machines if he rejected the offer. "It sounded like a cheap threat and that's how we took it. The Government has told us we can own and operate the machines, which is something we can do by ourselves. We don't need them [Tabcorp]," he said.

Mr Drill is urging the Brumby Government to ensure that by the time the new system is introduced, enough machines are available for venues that have bought entitlements.

Clubs Victoria executive director Margaret Kearney said she had asked the Australian Competition and Consumer Commission to investigate Tabcorp's conduct. "They are trying to frighten clubs into signing an agreement that is grossly weighted in their favour," she said.

The ACCC is already examining allegations that Tabcorp tried to persuade Clubs Victoria not to bid for a gaming licence in March last year by offering a $20 million inducement.

Yesterday, Tabcorp spokesman Bruce Tobin rejected claims the gaming giant had coerced venues into signing up to its TGS venture. He accused Clubs Victoria of attempting to destabilise the venture, which is to be launched in Melbourne next week.

"Tabcorp seriously questions the motives of these allegations on the eve of the launch," Mr Tobin said. (Credit: The Age)

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