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Review of the Registered Clubs Industry in NSW - Clubs NSW

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12 Mak<strong>in</strong>g it easier for new clubs to be established<br />

12.2.2 Changes <strong>in</strong> clubs’ operat<strong>in</strong>g environment<br />

The operat<strong>in</strong>g environment <strong>of</strong> <strong>the</strong> clubs <strong>in</strong>dustry has changed s<strong>in</strong>ce <strong>the</strong> boom <strong>of</strong> <strong>the</strong><br />

1950s. Competition has <strong>in</strong>creased <strong>in</strong> many <strong>in</strong>dustries, and <strong>the</strong> clubs <strong>in</strong>dustry is no<br />

exception. There is now greater competition from commercial providers <strong>of</strong>fer<strong>in</strong>g<br />

services that once only clubs provided, such as sport<strong>in</strong>g facilities and<br />

meet<strong>in</strong>g/conference venues. On <strong>the</strong> o<strong>the</strong>r hand, some clubs have moved <strong>in</strong>to new<br />

areas <strong>in</strong> competition with <strong>the</strong> private sector, such as fitness and accommodation.<br />

It can be argued that <strong>in</strong>creas<strong>in</strong>g competition has placed pressure on clubs. For<br />

example, between 1994/95 and 2004/05, <strong>the</strong> number <strong>of</strong> bus<strong>in</strong>esses operat<strong>in</strong>g sports<br />

grounds and facilities grew by 15 per cent <strong>in</strong> <strong>NSW</strong> to 508 venues. 226 Over a similar<br />

period (1998 to 2007), <strong>the</strong> number <strong>of</strong> cafes and restaurants grew by around<br />

16 per cent to 5,603 venues. 227 However, <strong>the</strong> number <strong>of</strong> registered clubs decreased.<br />

While this competition may be plac<strong>in</strong>g pressure on clubs, and may be a barrier to<br />

club establishment, IPART considers that is generally a positive change for <strong>the</strong><br />

community. For example, more providers <strong>of</strong> sports and hospitality facilities give<br />

consumers more choice.<br />

12.2.3 Change <strong>in</strong> <strong>the</strong> legislative environment<br />

The legislative environment is also ano<strong>the</strong>r important factor <strong>in</strong>fluenc<strong>in</strong>g <strong>the</strong><br />

establishment <strong>of</strong> clubs. In <strong>the</strong> 1950s, legislation supported growth <strong>in</strong> <strong>the</strong> <strong>in</strong>dustry<br />

through amendments that allowed clubs to operate gam<strong>in</strong>g mach<strong>in</strong>es and removed<br />

<strong>the</strong> cap on <strong>the</strong> number <strong>of</strong> clubs that could be registered. At <strong>the</strong> same time, <strong>the</strong>re were<br />

operat<strong>in</strong>g restrictions on competitors <strong>in</strong> <strong>the</strong> liquor and gam<strong>in</strong>g markets. Hotels and<br />

pubs had restricted trad<strong>in</strong>g hours and were not allowed to operate gam<strong>in</strong>g mach<strong>in</strong>es.<br />

However, s<strong>in</strong>ce <strong>the</strong> 1950s, <strong>the</strong> legislative environment relat<strong>in</strong>g to clubs has become<br />

more complex as more areas <strong>of</strong> <strong>the</strong> <strong>in</strong>dustry are regulated. Some legal <strong>in</strong>struments,<br />

specific to <strong>the</strong> clubs <strong>in</strong>dustry, have <strong>in</strong>troduced barriers to <strong>the</strong> establishment <strong>of</strong> clubs<br />

<strong>in</strong>clud<strong>in</strong>g:<br />

<br />

<br />

<br />

complexity <strong>of</strong> <strong>the</strong> process to become a registered club<br />

land requirements associated with a club be<strong>in</strong>g <strong>the</strong> bona fide occupier <strong>of</strong> premises<br />

limits on <strong>the</strong> number <strong>of</strong> free gam<strong>in</strong>g mach<strong>in</strong>e entitlements for new clubs and<br />

restrictions on movement <strong>of</strong> gam<strong>in</strong>g mach<strong>in</strong>e entitlements for satellite clubs as<br />

well as <strong>the</strong> cost and complexity <strong>of</strong> <strong>the</strong> Social Impact Assessment (SIA) process.<br />

226 Australian Bureau <strong>of</strong> Statistics, Sports and Physical Recreation Venues, publication 8686.0 (1994-95) and<br />

(2004-05).<br />

227 Australian Bureau <strong>of</strong> Statistics, Cafes and Restaurants, publication 8655.0 (2006-07).<br />

<strong>Review</strong> <strong>of</strong> <strong>the</strong> <strong>Registered</strong> <strong>Clubs</strong> <strong>Industry</strong> <strong>in</strong> <strong>NSW</strong> IPART 199

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