The Fifth Social and Economic Impact Study 2020-21
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The Fifth Social and Economic Impact Study 2020-21 Submission by Federal Group Tasmania 1. Federal Group 3 Contents • Federal Group Tasmania 4 • Federal Group gaming 5 2. Economic factors 6 • Impact of the global COVID-19 pandemic 6 • Recent gaming trends 9 • Observations of player activity 10 • Mandatory Pre-Commitment 11 • Tasmanian gaming industry professionals 12 3. Contribution to Tasmania 14 • Federal Group’s contribution to the Tasmanian economy 14 • Investment in innovation and technology 15 4. Player Supports 16 • Responsible gambling measures and practices 16 • Identifying and supporting people who may experience problems 17 • Rise of unregulated gaming products 18 5. Summary 20 6. Appendixes 21 Contact: Federal Group Executive General Manager Corporate and Regulatory Affairs, Dr Daniel Hanna Phone: 0417 119 243 Email: [email protected] The Fifth Social and Economic Impact Study 2020 – 21 2 1. Federal Group Federal Group is Australia’s oldest continually operating hotel group, with a rich history stretching back to the 1880s. Federal Group is a privately owned family company and is one of Tasmania’s largest private-sector employers. In addition to the company’s significant tourism, hospitality and entertainment businesses in Tasmania, Federal Group also operates: • COPE Sensitive Freight, a nationwide transport company • Odyssey Gaming, a Queensland-based gaming technology provider and Licensed Monitoring Operator (LMO). The Farrell Family Federal Group is proudly owned and operated by the Farrell family. Greg Farrell Snr privatised the company in the late 1980’s and it is today run by his son Greg Farrell, Managing Director and CEO, along with his siblings and fellow directors Julia, John, Deborah and Jane. Corporate Executive Greg Farrell Nick Linnett Daniel Hanna Colin Dewhurst Managing Director Chief Operating Executive General Chief Financial and CEO Officer Manager Corporate Officer and Regulatory Affairs The Fifth Social and Economic Impact Study 2020 – 21 3 Federal Group Tasmania For more than 60 years Federal Group has been at the forefront of Tasmanian tourism, hospitality and entertainment. Federal Group purchased the Wrest Point Riveria Hotel in 1956 and opened Australia’s first legal casino on the site in 1973. In 1982, Federal Group opened Country Club Tasmania, the world’s first integrated casino-resort, in Prospect Vale just outside Launceston. The company has grown to become Tasmania’s leading tourism and hospitality operator, with award-winning hotels MACq 01, Saffire Freycinetand Henry Jones. Federal Group also owns Vantage Group which has 12 community hotels across Tasmania and 20 9/11 Bottleshop retail liquor stores. While each business has its own iconic brand, together they represent the very best of Tasmanian entertainment, hospitality and tourism, and operate collectively as Federal Group Tasmania. Federal Group Tasmania employs almost 2000 people and a 2016 report by Deloitte Access Economics found the company contributed more than $343.12 million directly and indirectly to the state economy during 2015-16. The company proudly employs people across the state and its diverse team is made up of trainees and apprentices, visa holders, specialists, technicians, graduates, subject experts, new migrants and students. Operating in industries renowned for high staff turnover rates, Federal Group is proud its Tasmanian employees have worked with the company for an average of 7.5 years. More than 173 employees have worked for Federal Group for more than 20 years. Federal Group businesses are recognised locally, nationally and internationally as leaders in their field. 4 The Fifth Social and Economic Impact Study 2020 – 21 Quick Facts • Federal Group employs almost 2000 Tasmanians. 1700 people work in gaming businesses (Wrest Point, Country Federal Group gaming Club, Vantage, Network Gaming) and of those, 530 hold a special employee licence, technician licence or have Federal Group has been Tasmania’s sole gaming licence approval as an associate for gaming businesses holder for more than 45 years and takes its responsibility • 93 venues with EGMs and 153 venues with Taskeno in as the state’s gaming custodian very seriously. Tasmania • $51.1 million paid in gaming taxes and licence fees Federal Group has invested heavily in developing and supporting stringent and responsible practices, which have ensured Tasmania has one of Australia’s lowest The Tasmanian Government has announced its intention to levels of problem gambling and low levels of gaming shift from the current model, to one that directly licences density and spend. pubs and hotels to operate EGMs; while Federal Group would retain its two casino licences and the licence to Electronic gaming machine (EGM) activity has been in steady operate the game of Keno within Tasmania. decline for more than a decade, which is in stark contrast to The Government’s policy also proposes: the rapid growth in online casinos and smartphone gaming apps. Rates of EGM player expenditure, particularly in casinos, • the creation of two new ‘high roller’ casino licences for and the density of EGMs in Tasmania remain well below most non-Tasmanian residents states and the national average. This is consistent with low • a market-based mechanism for selecting Tasmania’s rates of problem gambling in Tasmania, which are below the Licensed Monitoring Operator (a function currently national average and rate of most other states. undertaken by Network Gaming, which is operated by Tasmania’s current gaming licence arrangements are subject Federal Group) to a 2003 Deed agreement which granted exclusive casino Federal Group is proud of its achievements as Tasmania’s licences to Federal Group to operate Wrest Point Hotel Casino exclusive licence holder and its commitment to develop and Country Club Casino, and responsibility for EGMs and a sustainable industry. Over the past 45 years the gaming Keno in hotels and clubs. industry has delivered significant returns for the state, in The Deed has now entered a five-year rolling term, and under addition to high levels of regulatory compliance and player the terms of the Deed would expire no earlier than 30 June protection. Unquestionably, the current single operator 2025. The future of Tasmania’s gaming licences are currently licence model has resulted in significantly reduced being considered by the State Government. At this point, operating costs to the Tasmanian Government, in terms of Federal Group does not have a complete understanding of its oversight and the delivery of regulatory provisions of the future operating environment beyond the current Deed. Gaming Control Act 1993. The Fifth Social and Economic Impact Study 2020 – 21 5 5 2. Economic factors Impact of the global COVID-19 pandemic The COVID-19 pandemic has represented the most significant impact to operations for Tasmanian businesses in the gaming, hospitality and tourism sectors in living memory. As a company, Federal Group had identified in February that the Federal Group took the decision once the forced shutdown Coronavirus represented a risk to the business and the Tasmanian occurred to focus on supporting the welfare of employees, with a economy. By early March each Federal Group business had particular focus on those considered vulnerable. To that end, the implemented practices and policies to help reduce the risk to company employed an independent welfare consultant to provide staff and customers from the spread of the virus. However, by the advice and to support the company to establish a framework middle of March it became clear that the pandemic was spreading to support vulnerable employees. The company then engaged rapidly throughout the world and in Australia, and that further full-time internal resources to provide welfare checks as well as restrictions would be forthcoming. financial and in-kind assistance to those considered to be most vulnerable. However, the company was still shocked and surprised when the announcement was made by the Prime Minister that all The vulnerable worker support was provided to over 200 casinos, hotels, restaurants and bars were to be forcibly closed employees in the period from March 2020. The types of assistance from midday on 23 March 2020. At that time, it was unclear ranged from weekly food deliveries for employees and their when or if the businesses would be able to re-open and meant families to housing support, and medical assistance. At its peak, that the company had to stand down over 1,500 of nearly 2,000 the company was providing well over 100 food deliveries per Tasmanian employees. week, with the support of partners such as Hill Street grocers. In addition, Federal Group employees were invited to donate from It was with great relief that the Commonwealth Government soon their wages or donate their leave to support vulnerable workers, announced the JobKeeper program. Very soon after this was with the company matching each donation dollar for dollar – announced, and prior to the details of the scheme being fully this raised well over $100,000, which was then distributed to known, Federal Group took the decision to start paying JobKeeper vulnerable employees. to the employees that were believed to be eligible. This was done to provide income certainty for those employees impacted Most of the support was provided to temporary visa holders as quickly as possible, and to also ensure that valuable people who were not able to access government assistance – such as remained engaged. JobKeeper or JobSeeker. The welfare of these workers became a significant component of regular leadership meetings during the Prior to the COVID-19 pandemic, Federal Group had period of forced shutdown. approximately 1,930 Tasmanian based employees. Over 1,400 employees were paid under the JobKeeper program during the Despite the shutdown, Federal Group worked hard to keep its first round of the program that applied until 30 September. This dedicated team engaged and in an employee survey conducted in included all Tasmanian employees, with the exception of those August, 89% of employees said they would recommend Federal casuals with less than 12 months service and foreign visa holders.