Poker machine king Bruce Mathieson wins

BILLIONAIRE pokies king Bruce Mathieson is bracing for the loss of up to 2000 machines under a Brumby Government industry crackdown.

But a decision to hand pokies venues a greater share of profits means he will still become even richer.

Gaming Minister Tony Robinson has revealed the Government is investigating laws to prevent Mr Mathieson from owning or managing more than 35 per cent -- or 4813 -- of the state's pub pokies beyond 2012.

The powerful hotel baron, who now controls 6768 machines in partnership with supermarket giant Woolworths, will also be stopped from owning, managing or associating himself with pokies in sporting and community clubs.

A candid Mr Mathieson told the Herald Sun he expected the 35 per cent cap to be non-negotiable.

"No-one really knows. But I think 35 per cent is 35 per cent," he said.

"And if that's the way it comes out, then yes I will (have to shed machines). But it's miles too early to say yet because nobody knows any of the fine print . . . and you can only play with the rules that you've got."

Despite the enforcement of a cap, industry experts predict the "Bruandwo" consortium (Bruce and Woolworths) to emerge as the single biggest winner after the end of the Tatts-Tabcorp pokies duopoly in 2012.

Mr Robinson yesterday confirmed private pub and club owners would be guaranteed a far greater share of player losses.

But Mr Mathieson angrily denied reports he had boasted privately that the shake-up had made him $1 billion richer.

"That is just bloody rot. It is just so stupid to say," Mr Mathieson said.

"Because of the 35 per cent we could come out a lot worse . . . but no-one knows anything yet."

The extent of the Woolworths-Mathieson pokies-hold is revealed in a new website detailing the location of 100 Victorian gaming venues.

Pokiewatch.org shows the "Bruandwo" consortium now controls about one in four of the state's 27,500 pokies.

An average of $90,000 is lost on each Victorian poker machine every year -- a total of $2.5 billion.

Mr Mathieson personally profits from hundreds of other machines under a contentious management structure of about 15 suburban pokies clubs, including venues owned by AFL clubs, including Collingwood and Richmond.

The Government will reveal exact details of the new industry structure in early 2010.

But a spokeswoman for Mr Robinson confirmed pokies pubs and clubs would be given "the opportunity to retain more revenue from gaming machines, allowing for a better spread of benefits to the community".

Emma Diffen said the Government was also exploring measures to prevent hoteliers from entering into management arrangements with club venues.

However, industry experts have warned major operating groups will enjoy a headstart by buying poker machines in bulk for almost half the price.

Small pubs and clubs will be forced to pay about $35,000 for each new machine -- a figure reduced to about $20,000 based on volume discounts.

"It's clear that the major hotel groups are the big winners from the restructure . . . it's nothing more than a transfer of wealth," a senior gaming industry official said.

After 2012, pokies revenue will be divided about 50-50 between the venues and the Government.

News Added: 21 May, 2008

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