Business seems to be approaching a standstill for hotel giant Federal Group, as they may be experiencing a downfall in business as their license to hold a monopoly over poker machines in Tasmania comes to a close in the year 2023.
Reports suggest that there will be a meeting of the Parliament of Tasmania to discuss the future of the Tasmanian Poker Parlours and if they should continue with their stance to let Federal Group retain a monopoly of the sector. If the parliament does not rule for the Federal Group, Tasmania could see a rapid increase in the number of casinos emerging in a market that was previously one that competitors could not divulge into.
Federal Group currently owns two state-run casinos in Tasmania, both of which are overseen by their current managing director named, Greg Farrell. Even though the lift of the monopoly will significantly open up the casino market, predictions suggest that Federal Group might experience a significant drop in business owing to the rise of competitors.
Even though some Tasmanians have consistently tried to raise the issues of gambling among its population, Greg Farrell still maintains that the citizens do love his casinos and reports of anything against that are widely inaccurate. Moreover, in a recent interview, Greg Farrell also mentioned that compared to the harsher addictions like alcohol and drugs, gambling does not cause any harm to society and does not have any adverse health benefits. He also mentioned that his company had conducted numerous surveys regarding the effect on gambling all of which have evidence to prove that gambling is not of a menace to society.
However, when the Parliament did conduct a survey and consulted the public on whether or not they wanted their much-loved casinos out of the residential areas, a whopping eighty-three percent of the people said that they would prefer if their neighborhood pokies did not exist. However, Greg Farrell refuses to acknowledge this fact owing to the growing business his company has been receiving over the years.
Federal Group alone accounts for more than $343 million of the national income of the country. A loss of this monopoly could result in the economy losing out the gain they get from Federal Group, but it could also see a relative increase owing to the business derived from other companies who will be entering the gaming market.
Federal Group has had the monopoly of casinos for the past four decades. In the past, many talks of amending the gaming laws of the country have been raised by various groups and members of the parliament as well, but the government has previously not taken any stand against the monopoly. However, it seems that now, the government is going to go through with its decision to terminate the monopoly contract to allow for an opening of a thriving business. However, the government is yet to say out some fundamental guidelines and procedures for companies to attain proper licenses for the establishment of casinos.
