Jacaranda Advisory

 

 Industry Update - September 2012 - No. 95

A changing Queensland Hotel and Club gaming marketplace - snapshot
What has happened in the Queensland Hotel and Club gaming marketplace in the last three years?

Clubs

Hotels

Number of gaming venues - October 2009

556

769

Number of gaming venues - September 2012

505

759

Decrease in gaming venues

-51

-10

% Decrease

-9%

-1.3%

 

 

 

Approved gaming machines - October 2009

24 198

19 985

Approved gaming machines - September 2012

24 368

19 371

Increase in approved gaming machines

165

614

% Increase

0.7%

3.2%

 

 

 

Average EGMs per venue - October 2009

44

25

Average EGMs per venue - September 2012

48

26

 

 

 

Average revenue per day per operational machine – Year end 30/09/2010

$99

$138

Average revenue per day per operational machine – year end 30/09/2012

$107

$153

Increase in average revenue per day per operational machine

$8

$15

% Increase

8%

14%

 

 

 

Number of venues 201+ EGMs

22

-

Number of venues 101-200 EGMs

45

-

Number of venues 41-100 EGMs

85

10

Number of venues 31-40 EGMs

25

320

Number of venues below 30 EGMs

331

429

 

 

 

% of gaming machines for venues 201+ EGMs

24%

 

% of gaming machines for venues 101-200 EGMs

30%

 

% of gaming machines for venues 41-100 EGMs

22%

2%

% of gaming machines for venues 30-40 EGMs

4%

65%

% of gaming machines for venues below 30 EGMs

20%

33%

  • Both Club and Hotel gaming venues are undergoing rationalisation, Clubs at a greater rate than the Hotel sector.
  • The rationalisation is occurring in the small gaming venue range.
  • Sites without critical mass cannot offer what the market expects as to facility, gaming offer and total venue experience.
  • Increased compliance and costs are also forcing a large number out of the gaming industry.
  • Jacaranda Advisory expect that this rate of drop out will continue over the next few years with the slower economic conditions, especially in the Club sector.
  • Venues are, in general, increasing their gaming machine numbers.  The total number of approved machines for both Hotels and Clubs increased by 779 gaming machines in 3 years, or 2%, with Hotels 3.2% and Clubs 0.7%
  • In the last 3 years total Club revenue has increased 8% and Hotels are gaining a bigger share of revenue with an increase of 14%.
  • If inflation is considered, the Club industry has produced marginal growth in real terms in that three years.
  • The Club market is dominated by 67 Clubs (13% of all Club venues) who operate 54% of all Club gaming machines.
  • The Hotel sector has 67% of all machines operated by 430 Hotels (50% of all Hotel venues).

 


QLD Gaming Revenue Trend
September 2012 has produced mixed gaming revenue growth for Queensland Hotels and Clubs.

Total state gaming revenue has increased 2% on September 2011.

Total State net metered win in Queensland gaming venues in September 2012 has increased by $3,415,470 or 2% when compared to September 2011. 
    
A number of areas reported negative or less than 1% growth, including Brisbane.

A detailed breakdown by statistical division for September 2012 is as follows:

 

Metered Win ($)

 

 

 

Metered Win Per Machine

 

 

 

 

Sept-12

Sept-11

Difference

%

Sept-12

Sept11

Difference

%

 

 

 

 

 

 

 

 

 

Brisbane

$69,842,925

$69,863,956

-$21,031

0.0%

$4,256

$4,292

-$36

-0.8%

Central West

$309,711

$283,350

$26,361

9.3%

$2,581

$1,889

$692

36.6%

Darling Downs

$7,780,901

$7,570,832

$210,069

2.8%

$3,233

$3,015

$218

7.2%

Far North

$10,092,865

$9,932,125

$160,740

1.6%

$3,843

$3,816

$28

0.7%

Fitzroy

$10,437,881

$9,803,133

$634,748

6.5%

$4,340

$4,124

$216

5.2%

Gold Coast

$24,138,715

$23,051,484

$1,087,228

4.7%

$4,049

$3,851

$199

5.2%

Mackay

$9,792,358

$9,451,824

$340,534

3.6%

$4,104

$4,166

-$62

-1.5%

North West

$2,550,545

$2,538,849

$11,696

0.5%

$4,251

$4,289

-$38

-0.9%

Northern

$8,821,257

$8,874,246

-$52,989

-0.6%

$4,384

$4,323

$62

1.4%

South West

$964,497

$781,208

$183,289

23.5%

$3,121

$2,648

$473

17.9%

Sunshine Coast

$12,158,743

$11,761,898

$396,845

3.4%

$3,641

$3,524

$118

3.3%

West Moreton

$1,750,445

$1,746,300

$4,145

0.2%

$2,893

$2,940

-$47

-1.6%

Wide Bay Burnett

$10,912,099

$10,478,262

$433,837

4.1%

$3,380

$3,229

$151

4.7%

 

 

 

 

 

 

 

 

 

Total

$169,552,939

$166,137,469

$3,415,470

2.1%

$3,998

$3,929

$70

1.8%

Source: Calculated from Data sourced from the Queensland Government - Office of Liquor & Gaming Regulation

The growth and decline that the gaming industry (as a result of the 100% smoking ban introduced 1 July 2006 and economic factors) has experienced since July 2006 on a yearly month on month basis are illustrated in the following graph.

Source: Calculated from Data sourced from the Queensland Government - Office of Liquor & Gaming Regulation

 

 

Source: Calculated from Data sourced from the Queensland Government - Office of Liquor & Gaming Regulation

 


Positions Vacant

General Manager - Virgina Golf Club
Virginia Golf Club is an established Brisbane Northside Club with a 27 hole golf course, and a licensed clubhouse facility offering bar food, gaming and function facilities.  We seek an experienced and capable General Manager with strong marketing and revenue building experience.

Please send applications to Frank Balzary at frankb@hmw.com.au or phone 07 3234 8917.

Compliance Officer - Affordable Management Corporation
Affordable Management Corporation administers properties that participate in the National Rental Affordability Scheme.  A vacancy exists for a compliance officer who has attention to detail and experience in processing large volumes in a systems-based team environment.

Please send applications to Frank Balzary at frankb@hmw.com.au or phone 07 3234 8917.

Graduate/Undergraduate Accountant - HMW Partners
HMW Partners is a Brisbane Based Chartered Accounting firm seeking a graduate or undergraduate for their Business Services section.  The successful candidate will gain exposure to a number of different industries and clients and will be provided with suitable mentoring and training.

Please send applications to sue@hmw.com.au or phone Sue Hobdell on (07) 3234 8988.

Further details on each position can be found on the Jacaranda Advisory website www.jacarandaadvisorygroup.com.au
Planning and Financial
Jacaranda Advisory can assist with any of the following services.
  • Feasibilities (financial and market)
  • Business Plans
  • Strategic Planning
  • 90 day operation plans
  • Club mergers
  • Hotel due diligence

Gaming and Liquor Licensing services
Do you need help with any of the following? 
  • Gaming machine increases
  • Community Impact Statements
  • Transfers of Liquor and Gaming Licenses
  • New Liquor and Gaming Licenses
  • Extension of hours applications and other variations for both Liquor and Gaming
Call the team at Jacaranda Advisory to discuss your needs further.

If you would like to discuss any matters please feel free to give us a call on 07 3234 8917 or alternatively email one of the team Frank Balzary at frankb@hmw.com.au, Steve Koman at steve@hmw.com.au, or Jessica Farr jessica@hmw.com.au. We look forward to hearing from you.

Yours Faithfully
                                        
Steven Koman                                                     Frank Balzary
Director                                                                 Director

 

 

 

 

Contact Us:
Phone: +61 (7) 3367 1994
Email: 
steve@jacarandaadvisorygroup.com.au
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