Hospitality behemoth Iris Capital is seeking to add dozens more gaming machines to venues across Alice Springs, just weeks after buying several of the town's biggest hotels and pubs for $60 million.
The move is facing major backlash, with community members expressing concerns over more pokies in a region already grappling with deep-running social problems exacerbated by the gambling industry.
The Sydney-based company, headed up by billionaire Sam Arnaout, has put public notices in the NT News stating it has applied to the Director of Gaming Machines for licences to add 40 machines across Uncles Tavern, the Gap View Hotel, and the Todd Tavern.
If approved, it would be the first time Uncles Tavern housed pokies, and would drastically expand the company's gaming footprint in Alice Springs that already includes more than 300 machines at Lasseter's Hotel Casino.
'Not about building a better community'
Michael Liddle, an Alyawerre man and councillor for the Alice Springs Town Council, said scaling up the number of pokies at pubs would have a severe impact on the most disadvantaged members of the community.
"As far as I know, [Iris Capital] is a company with a lot of money investing in the town, but the purpose of the investment is not about building a better community," he said.
Mr Liddle, who has long advocated for better mental health and wellbeing for Indigenous men, said he did not believe the company's strategy aligned with the council's objectives.
That's despite Mayor Matt Paterson throwing his full support behind Mr Arnaout's investment juggernaut.
"The community of Alice Springs has to be protected," Mr Liddle said.
"The many people who pay rates and have services have to be protected because of the negative outcomes that this type of investment can lead to, and it's already got a base."
Using venues to their 'capacity'
In a statement, a spokesperson for Iris Capital said the company sought to use its newly purchased venues to their full "capacity".
The Northern Territory government has backed the company's $250 million investment pipeline for the outback town, and last year agreed to fix the taxation rate on gaming machines at 15 per cent for the next decade.
For the 2020–21 financial year, the NT government raked in more than $12 million in gaming machine tax, but that figure was likely much higher for the most recent 12-month period thanks to the comeback from COVID-19.
Pokies more addictive than other gambling
Consultant gambling researcher Dr Matthew Stevens said evidence suggested gaming machines were significantly more addictive than other forms of gambling.
"It's a very small number of people who will play these machines weekly, for example, but we know that 50 per cent or more of these people who play them weekly have problems and are experiencing harm from their gambling."
In the Northern Territory, there is a cap of 1,699 gaming machines permitted to be in operation in pubs and clubs. The number of pokies at the two casinos are not included in this limit.
Creating opportunities for tourists
Hospitality NT, a member-based peak body representing the hospitality industry, has staunchly defended Iris Capital's gaming machine expansion in Alice Springs.
Its chief executive, Alex Bruce, said it would create a better offering for tourists and locals and followed all the rules set by the NT government.
"It's a legitimate and legal avenue of entertainment for both tourists and locals alike," he said.
"There's half a million tourists in the Red Centre that we're targeting to create more experiences … you're about to see a boom there in better food, better accommodation offerings and, yes, gaming will be part of the services."
Mr Bruce argued that the gambling industry was well-regulated and problem gambling was not a big issue in the Territory.
"This is largely a southern fight that, for want of a better term, people are trying to import into the Territory," he said.
Gaming and Licensing Minister Chansey Paech did not answer questions about the government's decision to green-light Iris Capital's major buy-out and business strategy.
In a statement, Mr Paech said he was aware of the gaming machine licence applications but had no say in their approval.
"Decisions on gaming machine licence applications are made by the Director of Gaming Machines at the Department of Industry, Tourism, and Trade," he said.
"The Northern Territory government has in place limits on the number of machines available across the Territory, including individual venue limits."
The director of Gaming Machines' office has been contacted for comment.
