Rabbitohs raising the stakes

The next profit report might be a little smaller.

Yesterday South Sydney executive chairman Peter Holmes a Court, with full backing of his Hollywood star business partner Russell Crowe, announced his club would be turning its back on poker machines.

They should not be required in his "professional, inclusive modern club", Holmes a Court declared.

"Poker machines are something we believe are not right for Redfern," Holmes a Court said last night. "We believe the community wants us to provide a gaming-free environment."

For more than 50 years, poker machines and rugby league have fit together like a beggar's hand in a glove. South Sydney will create history by breaking that link.

The club premises, on Chalmers St, Redfern, are undergoing a $35 million redevelopment. The project includes 12,000sq m of commercial space, a $3 million refit for the leagues club and new administrative offices.

Holmes a Court is adamant pokies won't be needed when the club opens in May next year. He believes quality food and drink, good entertainment and conference facilities will make up for any shortfall.

Even with pokies, Souths never travelled smoothly. For the 15 years prior to the club being put into administration in 2006, an estimated $100 million - much of it in poker machine spending - was poured by the local community into the club.

"But the community didn't get any back and still it went broke," he said.

Holmes a Court hails from Western Australia, where no club has pokies.

"There are plenty of other bars and restaurants and clubs in other countries and cities where I have been that don't need gambling to survive," he said.

Discarding the poker machines would open the club up to a whole new audience, including many who are uncomfortable with large gaming floors.

The club has 160 machines in storage and that is exactly where they will stay.

Each machine, according to averages for inner Sydney clubs, would bring in up to $44,000 each in profit over a year. For 160 machines, that is equal to more than $7 million.

Holmes a Court said the truth is that much of this cash was from people who could not afford it.

He estimates are that more than 50 per cent of the cash spent on gaming at the club has been coming from people on welfare benefits.

He said modern business was about corporate responsibility and taking this money was not in the community's best interest.

The club already had invested heavily in programs to help those in need in the local community, including Souths Cares, and he wanted to continue to help those in the area in need.

Many young people come to the club to be close to their heroes, he said. They were better off without pokies making a racket in the background.

Holmes a Court admits that the move is going to be despised by others in the club industry, including the powerful lobby group ClubsNSW.

He is keen to stress that it's about what is good for Redfern, not anywhere else.

"I accept a wager from time to time and gaming is a reasonable pastime. I don't believe everyone who enjoys gaming is evil. But there is a time and a place for gaming and I don't believe that South Sydney is the time or the place," he said.

Club sources said many inner-city clubs were struggling to keep gaming profits up in the face of aggressive competition from hotels. Souths may be just recognising the inevitable.

The 160 permits could also be sold on the open market to other clubs at market rates - or maybe warehoused until better times.

Long-time anti-pokies campaigner Tim Costello is ecstatic over the decision.

Reverend Costello said Holmes a Court was a true pioneer in separating his club from the pokies dollar.

"I think other clubs should do what Peter has done and listen to their communities. They are saying that pokies are doing damage and we don't like it," Mr Costello said.

www.news.com.au/dailytelegraph/story/0,22049,22441593-5001031,00.html