Qld Poker Machine Authority Tender #21 Results Released

Attached and below are the latest Poker Machine Tender results for the tender closing on 6 June 2012 as provided by HLB Mann Judd. In summary:

  • $86,767 – South East ($No Market in Mar 2012)
  • $64,465 Coastal (down from $65,600 in Mar 2012 – or 0.82%)
  • $33,700 Western (up from $25,000 in Mar 2012 – or 34.8%)

According to HLB Mann Judd Partner Steven Gagel, the figures for the South East region were underwhelming with prices failing to reach the $90k mark, especially considering that there was no supply in the last tender and the stronger performing pubs are located in this region.

“I was expecting the value to shoot up to $110-$120k per authority with the major rooms increasing to 45 machines. With another 95 government shelved authorities expected to hit the November tender, it may well depress the market again and present a buying opportunity,” said Gagel.

“There are whispers on the grapevine that many publicans who wanted to increase their poker machines to 45 were stifled with red tape and did not participate in this tender due to technicalities.”

As illustrated in the report the Coastal region remained steady and the Western region continued with its impressive growth from $18,184 per authority in the November 2011 tender (85% growth). The Western region was the only region to clear all of its authorities for sale.

From 1 July, the tax rate on Net Metered Win (NMW) drops across the board from 35.91% to 35% and the bottom rung of the Health Services Levy drops out (not payable until monthly NMW is above $140k). Therefore, a room with a NMW of $1.68M will have an annual windfall of $27,888 – or an increase in venue value of $185,920 (assuming 15% yield). Also from 1 July 2012 the Qld payroll tax threshold increases to $1.1M (up $100k).

CLICK HERE to download the full report.