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Should country pubs that decline to have poker machines be entitled to tax breaks?

Emma Reynolds and her husband have owned the Junee Hotel since June. (ABC Riverina: Jess Scully)

In short: 

Slot machines in NSW pubs generated an estimated $900 million in profits in the first three months of this year.

Bar owners whose venues don’t have slot machines say they should get a tax break.

What’s next?

The call comes as the NSW government considers a controversial report into cashless gambling trials.

While debate continues over pokies policy and controversial cashless gaming trials, some NSW pub owners are showing they can defy the odds and survive without relying on punters’ profits.

When Emma Reynolds and her husband Brendan bought a pub in Junee, it didn’t have slot machines, but the couple were willing to take the risk.

“I want people to pull up a chair and sit down and immerse themselves in the conversation, which is a lost art,” Ms. Reynolds said.

“[Our customers] have an environment where they feel safe, happy and want to have fun.”

Should a country pub that refuses to install slot machines get a tax break?

Tim Lay said communities suffer when pubs are no longer places where people connect. (ABC Riverina: Jess Scully)

Tim Lay is a regular at the bar and likes the fact that there are no slot machines

“I don’t think slot machines are a necessity,” he said. 

“It’s not a social event – they’re sitting alone at the slot machines, tapping and tapping.” 

Mr Ley said pubs should be places for community connection.

He said: “There’s a lot of trade going on in the pub, especially in the past

“That’s how you find contractors or jobs”.

Should a country pub that refuses to install slot machines get a tax break?

For the owners of the Junee Hotel, communication and connection are more important than pokie revenue. (ABC Riverina: Jess Scully)

No-slap tax break?

But a bar without slot machines would be missing out on a lucrative source of revenue.

Figures from the NSW Liquor and Gaming Authority’s latest pub gambling revenue report show the 22,500 pokies in the state’s pubs brought in more than $900 million between April and June 2024.

Turnover per machine over a three-month period is approximately $40,000, although turnover is generally higher in busy urban areas compared to quieter areas.

Ms Reynolds said pubs without slot machines should get some special treatment.

“The tax cuts are a good thing for independent pubs that don’t have pokies but provide community spirit,” she said.

Should a country pub that refuses to install slot machines get a tax break?

Leanne Boswell transformed the former pokies room in her pub into the “Marilyn Room”, adorned with bright colours and flowers. (ABC Riverina: Jess Scully)

Leanne Boswell also runs a slot-free pub in Temora, north of Wagga Wagga.

She said: “We bought the pub without any gambling facilities so we didn’t know the difference.

“But it’s hard.”

Ms Boswell began exchanging donated cans and bottles for cash and offering the bars at local fairs.

“I don’t think you buy a bar to make money,” she said.

“Providing services to the community is really important.”

Should a country pub that refuses to install slot machines get a tax break?

There are no slot machines at the Railway Hotel in Temora. (ABC RIverina: Jesse Scully)

Difficult but possible

Stephanie Luck, who runs a pokie-free bar on the NSW mid-north coast, said she always refused when asked to install pokies in her bar.

“I hate this stuff,” she said.

“When you have these machines and people become dependent on them, it loses all the social aspect.”

The state government recently announced measures to prevent gambling harm, including limits on cash bets, political donations and signage restrictions on venues.

Should a country pub that refuses to install slot machines get a tax break?

Murray MP Helen Dalton has been calling for major reforms to the gambling industry for years. (Four Corners: Craig Hanson)

Independent state MP Helen Dalton said pubs without pokies needed extra support in the form of tax cuts or a relaxation of alcohol excise duties. 

Alcohol taxes in Australia are based on alcohol content and increase every six months.

Gambling helplines:

  • Online Gambling Helpline 1800 858 858
  • National Debt Helpline 1800 007 007
  • Lifeline: 13 11 14

Currently, the excise tax on beer with an alcohol content of 3.5% is $43.22 per barrel.

“I think it’s really unfair to the pubs out there trying to operate without slot machines,” Ms Dalton said.

The Alliance for Gambling Reform (AGR) provides a map of all slot-free pubs in Australia on its website.

AGR advocacy director Rebecca Paterson said more support was needed to help businesses move away from their reliance on gambling revenue.

“It’s important to recognize that changing business models is really difficult,” she said.

“[But] that doesn’t mean you can’t do it successfully.”

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