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Aristocrat Announces Cost-cutting Measures

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Poker machine giant Aristocrat Leisure announced a series of cost-cutting measures relating to its workforce, which accounts for around 70% of its operating expenses. Aristocrat’s shares have dropped 43% since February 21, impacted by social distancing rules and travel limitations worldwide.

Around 1000 staff will be stood down until the end of June, 200 roles will be permanently removed from the business and until September a further 1500 staff will have their wages cut by 10-20% and 200 people will move into part-time roles. CEO Trevor Croker’s US$1.6 million base salary will be reduced by 30%, while board fees will be cut by 20%.

“We are very sensitive to the impact of necessary cost reduction measures on our people, and will work hard to support them through this difficult time consistent with our ‘people first’ approach,” Croker said.

“We believe that these changes will help maximise opportunities for Aristocrat’s dedicated and talented people over the longer term. We will continue to do everything we can to restore momentum in our land-based business as quickly as possible recognising the importance of continuing to develop and deliver game content during this period,” Croker added.

He said that the steps announced, as well as other prudent steps taken as part of Aristocrat’s Covid-19 response, will deliver important operational and financial flexibility, focus and efficiency through this period of uncertainty.

“We are highly focused on protecting and leveraging our strategic advantages, including industry-leading Design & Development and effective User Acquisition investment, which Aristocrat will continue to prioritise. In land-based, we will ensure the business is ideally poised to partner our customers and grow as conditions improve, while in digital we remain fully focused on executing our growth plans and maximising opportunities at this time,” Croker said.

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Australia

ACMA Blocks More Illegal Offshore Gambling Websites

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The ACMA has requested that Australian internet service providers (ISPs) block more illegal offshore gambling websites, after investigations found 5 services to be operating in breach of the Interactive Gambling Act 2001. The latest sites blocked include Viperspin, Just Casino, Betandplay, Play Fina and Comic Play Casino.

Since the ACMA made its first blocking request, 835 illegal gambling and affiliate websites have been blocked. 215 illegal services have pulled out of the Australian market since the ACMA started enforcing new illegal offshore gambling rules in 2017.

Website blocking is one of a range of enforcement options to protect Australians against illegal online gambling.

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Australia

NSW Govt Announces $100M Funding Injection to Reduce Gambling Harm

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The New South Wales (NSW) government has announced a $100 million funding injection to reduce gambling harm across the state.

The funding for gambling harm minimisation comes as part of the first Minns Labor Government Budget and is the next step in the government’s long-term commitment to tackle money laundering, implement gaming reform, and reduce the harmful impacts of gambling across communities.

The NSW Government will redirect the $100 million fine imposed on Star Casino by the NSW Independent Casino Commission (NICC) over 5 years to fund harm minimisation initiatives.

This huge funding injection will allow for the enhancement of services and initiatives to reduce harm in the community from gambling including:

  • $10 million additional investment in 2023-24 for the Responsible Gambling Fund, through the Office of Responsible Gambling, for the provision of GambleAware counselling and support services, awareness and education campaigns and initiatives like Reclaim the Game, and to support world-leading gambling research.
  • $6.4 million to enhance self-exclusion and introduce third-party exclusions in pubs and clubs.
  • $3.4 million for the independent expert panel, established in July this year, to run and evaluate a 12-month cashless gaming trial in pubs and clubs, with expressions of interests recently called for venues to take part.
  • $21.7 million each year, for 3 years from financial year 24-25, to fund other gambling harm minimisation initiatives and reforms, including those recommended by the Independent Panel.

“This government has a clear focus and is committed to evidence-based reform. We know that when gambling becomes a problem, it is harmful to the person and the people around them, negatively impacting relationships, work life, finances and physical and mental wellbeing,” David Harris, Minister for Gaming and Racing, said.

Since being elected in March, the Minns Labor Government has banned political donations from clubs involved in gaming, established an independent panel to oversee a comprehensive trial of cashless gaming and recommend a roadmap for gaming reform in NSW. It has also reduced the cash input limit from $5000 to $500 for all new poker machines since July 1, slashed the number of gaming machine entitlements allowed in NSW by more than 3000 and banned all external gambling-related signage since September 1.

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Australia

VGCCC Charges Tabcorp and Eight Venues for Allegedly Allowing a Minor to Gamble

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The Victorian Gambling and Casino Control Commission (VGCCC) has charged Tabcorp along with eight venues for allegedly allowing a minor to gamble in breach of the Gambling Regulation Act 2003. Tabcorp faces a total of 54 charges, including 27 counts of allowing a minor to gamble and failing to reasonably supervise its electronic betting terminals.

The venue operators and a TAB agency face allegations they allowed a minor to gamble on 27 occasions between 8 September and 1 November 2022.

The venue operators have been charged with allowing a minor to gamble, allowing a minor within a gaming machine area and failure to ensure gambling vending machines were reasonably supervised at all times. The TAB agency has been charged with allowing a minor to gamble and failing to ensure reasonable supervision of its electronic betting terminals.

The venues are the Olympic Hotel, the Brunswick Club, the Edwardes Lake Hotel, the Parkview Hotel, the Albion Charles Hotel, the Doncaster Hotel, the Rose Shamrock & Thistle Hotel and the Northcote TAB Agency.

If found guilty, the operators face a maximum collective fine of more than one million dollars, while Tabcorp could face a maximum fine of $698,997.60.

VGCCC CEO Annette Kimmitt AM said: “One of the most serious harms is allowing minors to gamble. All gambling venues must ensure they do not accept a bet from a minor and must ask for identification from anyone they suspect could be underage.”

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