BALLARAT FOOTBALL LEAGUE SOCIAL CLUB INC.
SUBMISSION - GAMING MACHINE ARRANGEMENTS REVIEW 2016
The Ballarat Football League Social Club Inc (trading as the Ballarat Leagues Club)
wishes to submit the following submission for your consideration in response to the
Gaming Machine Arrangements Review currently being undertaken.
BACKGROUND INFORMATION ON BALLARAT FOOTBALL LEAGUE SOCIAL CLUB INC.
Please initially allow me to submit some background information on the Ballarat Football
League Social Club Inc.
The Venue Operator of the venue known as the Ballarat Leagues Club is the Ballarat
Football League Social Club Inc. The venue trading name is the Ballarat Leagues
Club.
The Ballarat Football League Social Club has a current Venue Operators License to
operate 54 EGM’s at the approved venue premises of 52 Humffray St Nth, Ballarat.
The Ballarat Football League Social Club appoints a Committee of Management, which
is elected by its members at an Annual General Meeting held annually.
The Committee of Management is made up of volunteers, and these people are generally
people who hold, or have held distinguished positions throughout Ballarat. In particular,
it should be noted that several members of the Committee are involved in other
community groups throughout Ballarat.
The Committee of the Ballarat Football League Social Club has a full time and
experienced Venue Manager, Chef, Gaming Manager and Administration Manager who
form the basis of the Management team at the Ballarat Leagues Club. The venue
currently employs 29 staff in total.
The Management Team at the Ballarat Leagues Club meet on a weekly basis (or more if
required) and the Committee of Management meet on a monthly basis.
BALLARAT FOOTBALL LEAGUE SOCIAL CLUB INC.
STATEMENT OF PURPOSE
The objects of the Club shall be:-
1.
To promote, advance, foster and cultivate the game of Australian
Football in the Ballarat region, with a particular emphasis in the Ballarat Football
League.
2.
To establish maintain and carry on Club premises for the
convenience and enjoyment of Members of the Club and guests of Members and
generally to afford all such persons the usual privileges advantages conveniences
and means of enjoyment as are usually provided for Members of a Social Football
Club.
3.
To make Application pursuant to the appropriate legislation from
time to time enacted and currently in force or any re-enactment or amendment
thereof to:a)
Victorian Commission of Gambling & Liquor Regulation for a Club
Liquor Licence or any other Licence Permit Authority capable of being granted to
an incorporated body; and
b)
Victorian Commission of Gambling & Liquor Regulation for a
Gaming Operators Licence and/or a Venue Operators Licence or any other
appropriate Licence Permit or Authority; and
c)
To hold transfer renew vary remove or surrender any such Licence
Permit or Authority if and when it is appropriate or opportune to do so and to do
and perform all such acts or things which may be necessary to obtain and protect
any such Licence Permit or Authority.
4.
To raise funds by lawful means for the improvement of the facilities
and amenities provided by the Club, the Ballarat Football League and its member
clubs, and the remuneration of its staff, and to distribute such funds if and when in
a manner approved from time to time by the executive committee of the Club by
way of donation to the Ballarat Football League and its member clubs, and to
other community groups for charitable sporting or benevolent purposes as
permitted by law.
5.
To engage in such other activities whether of a like nature or not as
may from time to time are permitted by law and determined by the executive
committee of the Club.
VENUE’S PRIMARY MARKETING POSITION
The Ballarat Leagues Club markets itself as a “one stop family entertainment venue,”
amongst our members, to visitors of Ballarat, and predominately to member clubs of the
Ballarat Football Netball League and their club members.
The Ballarat Football League Social Club Inc. trades as the Ballarat Leagues Club, and it
is through our close association with the Ballarat Football Netball League that we are
able to attract the majority of our trade.
By operating a high class bistro that seats approximately 140 patrons, and which
incorporates a “Kids Korner” that includes 4 x-box’s, computer games, tv/video and soft
area for the children our bistro attracts many families to its facilities. We promote our
bistro to the community as “BLC- Food and Fun for the whole family, while Supporting
the Local Community.”
Our members bar provides a comfortable “sports bar” atmosphere, offering designated
casual dining, pay tv, live sports and TAB facilities.
Finally, our gaming room currently has 54 EGM’s and offers a welcoming environment
for our patrons to enjoy the facilities.
The Ballarat Leagues Club primarily markets to the following Members:
 4400 social members on our Ballarat Leagues Club loyalty database through a
variety of different membership categories.
 And importantly, via the BFNL Member Clubs (and their Members of the
Ballarat Football League). These are summarised below:
Note: The Ballarat Football Netball League is made up of not just the Ballarat Football League
senior and junior competitions, but also the BFNL Youth Girls senior and junior competitions and
obviously senior and junior Netball teams. This represents approximately 4455 registered
footballers and netballers in central Victoria.
Based on AFL Victoria averages for the total annual average revenue for Major League Club
(Senior + Junior) the total amount of money generated by the Clubs under our “auspices” is
approx $7 million. When the generally accepted economic multiplier effect of 4 is applied then
BFNL footy & netball is the catalyst for circulating $28 million in the greater Ballarat region.
The Ballarat Leagues Club plays an essential role in providing vital & critical funding
to allow the clubs under the Ballarat Football Netball League "umbrella" to continue
to operate.
Ballarat Football & Netball League Inc.
Ballarat FNL Netball

11 Senior Clubs, 44 sides
Competition

9 Junior Clubs, 45 sides
Ballarat FNL Youth Girls
Football Competition
Ballarat FNL Junior Football
Competition
Ballarat FNL Senior Football
Competition


890 Participants
14 clubs

Approx 1,200 members


325 Participants
9 Junior Clubs

8 Age Groups, 72 sides

Approx. 2,200 members


2,250 Participants
11 Clubs

33 sides (Seniors, Reserves, Under 18's)

2,750 Club Members

990 Participants
Affiliated Clubs:
Ararat Storm (Youth Girls), Bacchus Marsh, Creswick (YG), Darley, East Point,
Golden Point (YG), Gisborne (YG), Lake Wendouree, MCDFNL Lions (YG),
Melton, Melton Centrals (YG), Melton South, Mt Clear, North Ballarat Juniors,
North Ballarat City, Redan, Riddell’s Creek (YG), Sebastopol, Sunbury
VENUE’S CONTRIBUTION TO COMMUNITY
The Ballarat Leagues Club annually contributes significantly to the greater Ballarat
region.
This is best summarised by an overview of the BLC’s “cash contribution” and also
further its’ “in kind” contribution for the most recent audited financial year of
2014/2015.
In terms of cash contribution, the BLC pays the entirety of the Ballarat Football Netball
League Finance Officer wages, with her hours equally split between the Ballarat Football
Netball League & the Ballarat Leagues Club. As such, with the full wage being paid by
the Ballarat Leagues Club, 50% of this wage is regarded as a “donation” to the Ballarat
Football League. This totals over $35,000
In addition, the Ballarat Leagues Club made the following cash donation to the Ballarat
Football Netball League in the 2014/15 financial year –$62,500 + GST
The Ballarat Leagues Club made cash donations to Ballarat Football Netball League
Clubs in the 2014/2015 financial year- $45,455 + GST
The Ballarat Leagues Club made various other cash donations to a number of other
community clubs and organisations (including the Ballarat Football Umpires
Association) in the 2014/2015 financial year- $7117 + GST
In terms of “In Kind” donations, in 2014/15 the BLC donated over $42,000 + GST worth
of venue bistro vouchers and discounts to various clubs, seniors groups, schools,
community organisations and our members.
In addition to the above direct cash and voucher donations, the Ballarat Leagues Club has
also provided discounted use of our venue the Ballarat Leagues Club as an “in kind”
contribution to various organisations and community groups to a total value exceeding
$5000.
TOTAL VALUE OF CASH, VOUCHERS & IN KIND: in excess of $197,000 *
Note: * This does not include all further additional items approved as community benefits
and submitted annually in our CBS.
Response to the Gaming Machine Arrangements Review
The Ballarat Football League Social Club Inc. wishes to provide the following points in
relation to the GMAR, and would ask you to consider the following:
Community Clubs of Victoria Response
The Ballarat Football League Social Club Inc. endorses the position of our industry
association, Community Clubs Victoria, which has been developed with the overall
welfare of Victoria’s not for profit clubs in mind.
Gaming Operator beyond 2022 – GMAR General Statement
Put simply, if our club were unable to operate gaming from 2022, we would not be able
to continue to provide the services we currently do. The Ballarat Football League Social
Club inc. relies heavily on the revenues from gaming. Although gaming is only one part
of the overall offer at the Ballarat Leagues Club, the BFL Social Club would not be able
to operate the Ballarat Leagues Club without gaming.
We would not be able to pay the costs such as rent associated with running a venue of our
size, or provide the facilities we presently offer. The Ballarat Leagues Club currently
allows the BFL Social Club to financially support the Ballarat Football Netball League
and its member clubs. It allows us to provide vouchers and support to many community
groups and sporting clubs in the region. It allows us to provide a welcoming,
comfortable and safe environment for our members. It allows us to employ the current
29 staff in a wide range of occupations.
If we were unable to operate gaming the staff number would be zero, as there would be
no possibility of continuing BLC in its current form. Our club, as listed above has over
4400 social members, but more importantly we provide support to over 6000 members
associated with BFNL clubs, and the 4455 participants. If the Ballarat Leagues Club no
longer operated gaming machines, the BFNL and its member clubs would suffer
dramatically.
Ballarat Leagues Club position on Key Issues.
Current Venue Operator Model
We would like to note that Clubs’ machines generate less than half the revenue per EGM
that Hotels currently achieve, yet the cost of Gaming Machine entitlements between clubs
and hotels are not dissimilar. We believe the pricing and taxation for entitlements should
acknowledge the disparity between the revenue earned from Hotel entitlements and that
earned from Club entitlements.
Distribution of Gaming Machines
We concur with the thoughts reflected in the CCV submission. We believe the current
measures in place including the 50/50 split between clubs and hotels along with the 80/20
regional caps should be maintained.
Ownership Restrictions
We do support CCV’s view that the restriction of club operation of entitlements should
be reviewed. The same restrictions that apply to hotels, should also apply to clubs. A
club or club group should be permitted to operate up to 35% of available club
entitlements, the same as a hotel owner.
Tax
The tax differential between hotels and clubs, whereby club enjoy an 8.33% tax
advantage by comparison, should be maintained in recognition of clubs’ not for profit
status.
We would like to note that our clubs operations, forward planning and ability to provide
financially to our primary purpose (the Ballarat Football League) was dealt a massive
blow when the taxation increase occurred in 2014/2015. There was no warning or
consultation, as the increased tax was announced and enacted within 4 months, and
within the same financial year. The increase in tax meant our club experienced a loss
from the bottom line of close to $100,000 annually, and we were forced to reduce
committed financial support to the Ballarat Football Netball League. We ask that the tax
structure and more importantly tax rate are set for an extended time, and that any changes
are scheduled or are communicated well in advance to allow clubs to budget for any
reduction in gaming revenue.
Entitlement Term
The current 10 year term has offered clubs very little security. We have experienced
issues with our lending arrangements during the term, with banks very nervous and
hesitant to support our club during the payment of entitlement term. Luckily, we were
able to secure lending, but the 10 year term and payment over 4 and a half years has been
a challenge on cash flow and our day to day operations thus far. Our club would like to
see the entitlement term operate similar to that of a liquor license, permanent in effect,
and not vulnerable to loss or withdrawal by the state unless financial default occurs or
there are serious breaches in operating standards.
Allocation- access to Entitlements
We again support Community Club Victoria’s views that the process must be an offer to
existing entitlement holders to extend their terms. This would see an orderly transition to
any new Entitlements regime.
Price and Settlement
We certainly believe that the price for Entitlements be related to the revenue potential
based on a long view of gaming at the site. Our club believes settlement of Entitlement
payments be paid with or alongside taxation payments. This would assist with cash-flow
and provide the state with continued revenue stream. We believe that the formula or
calculation assumptions that underpin the price be reviewed at regular intervals over the
Entitlement term.
Transfer Market
We again concur fully with the views expressed in the CCV submission. We believe the
State should have full control over Entitlement distribution.
24/02/2016
Roger Howlett
Secretary
On behalf of the
Ballarat Football League Social Club Incorportated.