The operation of redemption games is coming under fire in Australia from a few politicians who are citing redemption as teaching youngsters to gamble, a position fiercely resisted by NAMOA, the Australian amusement industry trade association.
Both prize and ticket machines are in the spotlight, although industry sources report that the critics are noisy but few in number. The situation has been made worse by one major pubs owner, Australian Leisure and Hospitality Group, owned mainly by the Woolworths retail chain, announcing that all machines should be removed from its locations except for chocolate or soft toy games. The chain owns 280 pubs and has added that those machines which are acceptable, should be sited at no more than two units per location. The move is seen as a direct result of the adverse publicity created by the anti-redemption faction.
In Australia, pubs operate their traditional poker machines, or gambling devices, with amusement games, including redemption offered in a separate room to which children have access. The opposition lobby is headed by Federal Senator Nick Xenophon with two or three political supporters. Although the ‘teaching the kids to gamble’ claim will hurt the amusement industry, it is seen as a criticism more of the pubs and the gambling industry in general.
Malcolm Steinberg, chairman of the LAI Group, which includes the manufacturer of the best-known quality prize redemption games, commented: “This is not the first time that Mr. Xenophon has waged a campaign but in the past he has never gathered a great deal of support. But the publicity which accompanied his claims are impacting the street market operators is resulting in fewer machines being operated. This is not because they think that there is anything wrong with them, but the comparison in income between their amusement devices and that of the poker machines makes some of them think that it is not worth the hassle.”
The developments come at a particularly bad time for the amusement machine industry in Australia, which has suffered along with the rest of the industry from recessionary influences and the lack of affordable video game product. Insiders reckon that the industry’s revenues are down heavily and now about 70 per cent of income is from ticket redemption games and direct-vend games.
Bruce Colbourne of AMD, a leading distributor in Australia, told us: “The video game situation is particularly bad. We have just seen the successful introduction of Terminator Salvation here, but it is not an exceptional game although in my opinion it is above average. It has been successful because this particular sector of the market was desperate for something new.”
The overall industry situation in Australia may be helped if a Liberal Government wins the upcoming general election (due August 21). The present Labour Government is not seen as the best supporter of the business sector and the amusement industry generally hopes that Tony Abbot’s Liberals will win, although any beneficial effects are likely to take some time to filter through.
The industry has its NAMOA trade show due to take place from September 2 to 4 at Jupiter’s Casino on the Queensland Gold Coast. It is being held in conjunction with the AVA, the Australian Vending Association.
