No pokies means no beer and no people for some country pubs
The New Coolamon Hotel was once a popular watering hole but now it's empty. A pub with no beer, no poker machines, and no people.
Key points:
- Country residents are worried some small pubs are being bought just for their poker machine entitlements and won't be viable without gaming
- In 2018 the law was changed making it easier for small country pubs to sell their entitlements
- Since then 123 country hotels have sold all their machines
The pub in the small Riverina town of Coolamon in southern New South Wales was recently sold to a buyer in Sydney.
The five poker machines were the first things to go and since then the pub has not reopened.
Former publican Danny Milne said it was a business decision to sell, but he knew it has had an impact on the town.
"I got a good dollar for my machines," he said.
"It's a pity they can't stay here. But if your entitlements can make more money somewhere else, of course you're going to take them."
Locals understand Mr Milne's decision to sell, but were disappointed the pub had not reopened.
"In effect the financial viability of the hotel business has been stripped out and the building left for sale," Coolamon Shire Council general manager Tony Donoghue said.
"These buildings are generally a focal point of the heritage of that town and are a large dominant, prominent building.
Clubs 'devastated' about the sale of their community hub
The Coolamon Rovers Cricket Club relied on the New Coolamon Hotel for sponsorship.
"I was devastated," captain Jamie Hard said.
"Being our major sponsor they paid for everything, so it is everything to us.
"Balls are $500 a box, bats are $100, pads $100, fees to enter the competition $300."
Law change made it easier to sell
In 2018 the New South Wales Government changed laws to allow small country hotels to transfer up to six poker machines without forfeiture, if the transfer resulted in the pub becoming a 'pokie-free' venue.
The changes were designed to make it easier for country pubs to sell their machines and since then 123 country hotels have taken advantage of the exemption.
Fourteen of those pubs are no longer trading.
Figures from Liquor and Gaming NSW also showed 13 per cent of all the machines transferred between venues in New South Wales since 2018 went from the country to city venues.
John Parsons Hotels sales manager Reggie Henderson said there was always plenty of interest in gaming machine entitlements when a pub went up for sale.
"There are a small number of hotels that are sold with the machines then transferred to other locations and the hotel then offered for resale — about 25 per cent of sales are occurring on that basis.
"There are large hotel operators who are garnering the entitlements as an investment base, especially within larger hotel groups where they have the opportunity to capitalise on that purchase."
A market for 'pokie-free' venues
Mr Henderson said there was a market for country pubs without poker machines with a growing number of people seeking out hotels that did not have gaming.
"We're seeing new operators, especially younger operators coming into the industry who are revamping the hotels, modernising and refreshing and being able to offer a superior product in food and beverage and certainly accommodation as well," he said.
The owners of the Tathra Hotel made a decision to sell their poker machine entitlements and have been operating without them for two and a half years.
"They write to me and say 'Can you come to our town and take over one of our hotels?'."
He said they expanded their accommodation and improved their food and drinks.
"We've put a small brewery into where the poker machines used to be so we're making our own beer on site where people used to put money into poker machines," he said.
"We've got a totally different market here than what was here before.
"People are coming here for a meal, they're coming here to stay, they're coming here to enjoy the place for what it is."
Future still uncertain for the New Coolamon Hotel
Residents in Coolamon were hopeful the New Coolamon Hotel would be put back on the market soon and reopened.
Former publican Danny Milne said he thought the pub could operate without poker machines, but it would be a tough gig.
"It can be done, but it's seven days a week and long hours and you're probably only buying yourself a job really so it would be hard," he said.
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