Annual Report 2017 The Registered Clubs Association of NSW ABN 61 724 302 100 ClubsNSW Level 8, 51 Druitt Street Sydney NSW 2000 Annual Report 02 9268 3000 www.clubsnsw.com.au 2017 AR Covers.indd 4 30/08/2017 12:07:10 PM Contents Our Purpose Contents & the Way We Work Overview 02. Our Purpose & the Way We Work Our purpose is to create opportunities for our 04. Chairman’s Review members to thrive. 08. From the CEO Board of Directors The way we work … 10. 12. Public Affairs 1. We treat people fairly, respecting their views 14. Workplace Relations and valuing their contributions. 16. Member Services & Marketing 18. Finance & Administration 2. We accept, embrace and promote diversity 20. ClubKENO Holdings Board of Directors and inclusivity. 3. We encourage our people to be creative, Financial Reports take initiative, show leadership and reach 21. Financial Reports Introduction their potential. 22. Directors’ Report 24. Accounting Officer’s Report 4. We take responsibility for our communications, 25. Statements of Profit or Loss decisions, actions and performance. and other Comprehensive Income 5. We act with integrity in our work and in dealing 26. Statements of Changes in Equity with others. 27. Statements of Financial Position 28. Statements of Cash Flows 29. Notes to the Financial Statements 56. Independent Auditor’s Report Supplements 58. State Councillors 59. Member Clubs 67. Affiliated Associations 68. ClubsNSW Community Partners 69. ClubsNSW Corporate Partners 70. ClubsNSW Industry Supporters CREDITS: EDITOR Darren Flynn | DEPUTY EDITOR Ben Rossleigh | CREATIVE MANAGER John Hewitt | AGENCY MKTG PHOTOGRAPHY Ben Symons Photography | PRINTER Pegasus Printing | DISTRIBUTION The Pack Factory Annual Report 2017 | 3 w Chairman’s Review Chairman’s Review Peter Newell OAM - Chairman lubsNSW has completed a year in competition for a range of new features and of competition for services. Agreement was a review of Local Impact Assessment (LIA) On behalf of its member which robust decisions breaking new new games reached with Tabcorp about how to best legislation under way. Work has begun with clubs, ClubsNSW ground on several fronts have prepared ¡ Work is underway developing a new protect club data following a merger, with regard to seeking election commitments from continued to support Cthe way for bigger things in 2017-18. Leading ClubGRANTS online system for clubs to use a legally binding Deed signed. The ACCC the major parties before the next State election. an impressive list of the charge has been the determination to free of charge. This will be a much-improved opposed the merger, claiming it would not There have been minimal changes to alcohol Community Partners embrace digital technology at every reasonable and simplified one-stop-shop for grant provide the net benefits that were presented, and smoking legislation affecting clubs during during the year, opportunity, and to assist and encourage applicants, local committees and reporting but the Tribunal did not agree. the year, and taxation rates remain stable. including Surf our members to do the same. At the same to Liquor and Gaming for tax purposes During the year the NSW political scene On the workplace relations front, the Lifesaving NSW, time, steps to address clubs’ governance and ¡ Work also is underway on the ClubSAFE changed at a personal level, but a strong Fair Work Commission has ruled favourably Fr Chris Riley’s wider community contribution have started a front to widen and enhance our world- relationship with clubs did not. Gladys on our application for our flexible part-time Youth Off The concerted push in those directions. class offering and web-based multi- Berejiklian replaced Mike Baird as Premier employment provisions to remain in place, Streets, the Talent The ClubsNSW Board in June resolved to venue self-exclusion system, plus ongoing and Paul Toole replaced Troy Grant in the which is a good outcome for clubs. Clubs Development approve the creation of a specialised digital gambling research. Racing and Gaming portfolio. ClubsNSW Australia Industrial has indicated to the Project, NSW services team, while recruiting clubs to a On the other side of the coin: enjoyed positive relationships with both the Commission that, in the absence of an agreed Regional digital commerce reference group, all aimed at ¡ ClubsNSW has launched a new program former leaders, as we do with the new and outcome on negotiations with the United Voice Academies of researching and developing new opportunities encouraging the recruitment and training of with the Opposition. The same can be said union on other matters including penalty rates, Sport, the Centre and ease of doing business for clubs. With a new cohort of club directors, arguably one of the Coalition and Labor parties at Federal it has an interest in merging the Clubs Award For Volunteering, regard to specific digital technology initiatives: of the industry’s greatest challenges level, although I cannot be as generous in with the Hospitality Award. In doing so, we the Clontarf ¡ ClubsNSW in 2016-17 announced a digital ¡ At the same time, a group is working to my recognition of the Greens and some would require the special award conditions that Foundation, Homes wagering advertising partnership with promote the benefits of board diversity, while others. The bottom line is, although some apply to clubs (including industry classifications For Heroes, the CrownBet. This exercise was about enabling more funding and education resources are anti-gaming extremists continue to try and and conditions relating to club managers) to be Salvation Army, Max clubs to benefit from choice and competition being directed to facilitate club mergers and influence political and community attitudes carried over. Potential, Life Education in digital wagering as well as being better lower associated costs to clubs and gambling, they are not being The game of Keno has been a real success and Little Wings. able to use technology to engage with their ¡ A Corporate Social Responsibility guide successful and much of the focus has been story throughout the year. Game performance members. It followed a rigorous tender has been completed, allowing clubs to placed on online gambling, with passage of at 30 June was at a record high 4.6 per cent process involving Tabcorp and other digital benchmark the growing importance of the new Interactive Gambling Act, reducing increase on last year (4.1 per cent for clubs) wagering providers. Tabcorp has sought to their CSR activities and report them to advertising and other trading conditions as which also was a record. Jackpot pooling challenge the arrangements – as is its right stakeholders well as increasing powers to stop overseas across the eastern seaboard, with NSW, Vic, – though we believe it can and should exist ¡ Pathways to education of directors, gambling groups from operating online to Qld and ACT pooled, enabled jackpots to grow with CrownBet if it is confirmed as being a managers, staff and the general community Australians. A so-called “test case”, in which more quickly, while Keno Mega Millions – the legal operation. We now are at the Supreme will be extended, including via the lawyers representing an Adelaide complainant $2 game offering the chance to win a Court in NSW seeking declaratory relief to Club Directors Institute, as well as the are seeking an order to restrain Aristocrat and minimum $5 million - came to life confirm that our arrangements do not breach Future Club Leaders program and Crown Resorts from supplying certain gaming with the first winner of $5.6m at NSW law and we will have a decision before market research. machines, wanting a declaration that they are Sydney’s Caringbah RSL Club the ClubsNSW AGM, enabling clubs to While all this has been happening, the “rigged” and designed to mislead and deceive in early June. Keno digital benefit from choice and competition Australian Competition Tribunal on 20 June players, has gone to the Federal Court. (or Keno in-venue mobile) ¡ As I reported this time last year, ClubsNSW approved an $11.6 billion merger of Tabcorp Aristocrat and Crown are defending this action was released, with 118 was not successful in a bid to win the NSW and Tatts upon condition that Tabcorp sell its and ClubsNSW, while not directly involved, clubs operational by the Central Monitoring System tender, but I’m Odyssey Gaming Services business. While certainly has a keen interest in its outcome end of June. pleased to say our objective to influence not opposing the merger as such, ClubsNSW which also may be known by the AGM. ClubsNSW the technological outcome for our industry and ClubsAustralia had advised the Australian Specifically on the NSW political front, finances were on now has been successful with the later Competition and Consumer Commission a Memorandum of Understanding between budget, with an announcement that the new CMS will be and the Tribunal of clubs’ concerns, including ClubsNSW and the Government remains afoot, association surplus fully G2S compliant. This will introduce the possible misuse of data and the impact with the issues of gaming machine leasing and of $371,778. 4 | Annual Report 2017 Annual Report 2017 | 5 Chairman’s Review (continued) “TheClubsNSW Chef’s ClubsNSW is a Founding Partner of Invictus Convention and Exhibition Centre, Broadbeach. Games Sydney 2018, whose patron is HRH This year the conference will move to the new Table awards continued Prince Harry. The Games are aimed at helping Sydney Convention and Exhibition Centre, to grow in recognition injured returned servicemen and women to Darling Harbour, from 13-16 October, with the gain further opportunities and recognition annual Clubs and Community Celebration and importance, while integrating back into mainstream society, night, usually held mid-year, part of the showcasing the great and will bring more than 500 competitors conference program. The second successful chefs in our clubs and plus supporters to the harbour city.