Thursday 10 January 2008

End of " the glory days " !

For decades club members in New South Wales have had the best of all worlds. Their clubs were the providers of gourmet meals at a fraction of restaurant prices. Drinks were similarly subsidized - and world class entertainment was provided for either a small fee - or in many clubs - free to members.

Those same clubs were socially benevolent. They funded Rugby League - and all manner of other sports and organizations such as Surf Lifesaving were beneficiaries.
The clubs were rich - and they shared their wealth widely.

The source of this wealth came from - poker machines. New South Wales was the first state to embrace this form of gambling and it tapped a ready market. In border areas, busloads arrived daily to play the machines and enjoy a free lunch at the host clubs.

In recent times all that has changed. The state government got greedy - and imposed a draconian increase in club tax. This was slightly reduced just before the last election, but the tax has crippled profits and subsidies to sport are declining - and in some cases have ceased.

Now there is a new threat to club profits. The no-smoking ban has resulted in an eight percent profit decrease - yet at the same time club patronage has increased. It seems that patrons enjoy the smoke free atmosphere, but they are not playing the poker machines as readily.

At the same time, wages and other overheads have increased sharply - and some of the smaller clubs have simply closed their doors or amalgamated with bigger clubs.

It seems that the glory days are over.

Club prices will surely rise and the surviving clubs will not be so generous with their money. There will always be problem gamblers, but it seems that the ordinary person is no longer prepared to compensate for those cheap meals and drinks - and the free entertainment - by the almost obligatory loss of a few dollars in the poker machines.

Maybe the state government killed the goose that laid the golden eggs !

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