Downturn in gaming revenue hits community grants
15 August 2005
10% downturn in gaming revenue hits community grants hard
In the first six months of 2005 non-casino gaming machine revenues are down by more than 10%, and grants to community groups are down over 13% as a result, the Chief Executive of the Charity Gaming Association, Francis Wevers, said today.
“We have surveyed a sample of the charitable trusts which operate gaming machines in hotels and pubs. Between them they operate over 11,000 machines which represents nearly 65% of the total number of machines outside clubs and casinos.
“Total gaming proceeds for the six months are down about $30 million. This has led to a reduction of nearly $15 million in the amount available for distribution to community groups. Because of a lag effect where grants to communities are made some time after revenue is earned we expect the downward trend in grants to continue for some months.
“There are some signs that the initial effects of the ban on smoking are easing but the impacts of limits on the amount which can be paid to venue operators are continuing to be apparent even though we can’t put a precise figure on it.
“Our trusts have told community groups they are not able to fund grants to the same level as previous years but most are still getting a proportion of what they have applied for. There are some signs that greater numbers of grant applications are being declined.