KellyCom | Gaming News Clips

Back to Articles Index

20 May 2001 , Hospitality Magazine

Poker machine play in New South Wales is set to dramatically change next year as a result of major regulatory changes recently approved by the Government.
The StateÂ¡Â¦s 100,000 machines will display regular gambling warnings, enforced breaks after wins and five-minute updates of amounts won or lost.
The Liquor Administration Board has specified a number of amendments to be made to the Technical Standards for Gaming Machines to facilitate harm minimization and foster responsible gambling.
The Standards will be amended to incorporate information about specific player returns and payouts on a second screen of the gaming machines.
Whenever a player has a win of $100 or more, there will be an enforced break and a message will invite the player to cash out. In addition, an alternative screen called a Â¡Â¥player information displayÂ¡Â¨ can be called up at any time to give the percentage return of the machine and the dollar value of the prizes on offer.
Information will also include Æ’nthe probability of winning the top 5 and lowest 5 single prizes and a Â¡Â§pull-throughÂ¡Â¨ harm minimisation message that runs across the screen at least once during every 30 minutes of continuous play (meaning without a break of 5 minutes or more).
While the changes mainly relate to restrictions and warnings, one sweetener for poker machine enthusiasts is an increase in the minimum return to player. At the moment this is set at 85 percent, but will be increased to 87.5 per cent once trials are undertaken and an implementation timetable is determined for the new modifications.

Potential cost for implementation

At the end of the day, the industry will pay for these changes and pass the costs on to the venues. But at what cost? No precise figure has been given for complying with these requirements.
In March 2001 there were 99,715 gaming machines in clubs and hotels in New South Wales. If an average price of $15,000 is taken then it is apparent that some $1.5 billion will be required to replace existing machines. In addition there will be costs to change systems, jackpot systems, multi-terminal gaming machines and a central monitoring system.
It should also be noted that machines in New South Wales have a relatively short shelf life and are replaced or modified on a regular basis at any well managed venue.
The industry has already absorbed substantial costs to previous changes made to gaming machine technical standards. It is estimated that the cost to the industry between 1995 and 2000 was $750 million to convert non-X machines to X-standard.
The LAB is attempting to take a balanced approach by considering the industryÂ¡Â¦s perspective with regards to costs associated with hardware and software modifications, as well as the need for a substantial timetable for the writing of software changes, development of new hardware, the manufacture, sale and installation of machines.
Perhaps more importantly, the LAB acknowledges the need not to interfere with legitimate forms of leisure.
Poker machines have evolved over some 40 years to a current level where it provides substantial recreation and enjoyment when played in a responsible fashion.