NSW: Clubs barred from buying hotels

AAP General News (Australia)
08-17-2001
NSW: Clubs barred from buying hotels

SYDNEY, Aug 17 AAP - Registered clubs were warned today they would be barred from investing
in hotels.

New South Wales Gaming Minister Richard Face said registered clubs would not be able
to invest members profits in "inappropriate business ventures such as hotels".

It was reported that at least two prominent Sydney clubs had bought popular night spots
in order to prop up their business amid the state government's clampdown on gaming.

Mr Face said he would hold urgent talks with clubs.

"Some clubs seem to have lost sight (of) .. their reason for being, that is, for the
benefit of members and the community," Mr Face said in a statement.

"Clubs were set up to provide facilities for their members, not enter into inappropriate
business ventures.

"Instead of wasting million of dollars on hotels, they should be putting their profits
into community projects, junior sport and (to) improve services for their members."

The Leagues Club Association of NSW said the move was an indication of the desperation
and uncertainty facing clubs.

It was getting difficult for clubs to compete with privately owned gaming venues, the
association's chief executive officer David Costello said.

"The decision for any club to consider buying a hotel would have been a difficult one,
however, many clubs are greatly concerned about their ability to continue to provide facilities
for their members, given the current environment where they compete with privately owned
gaming."

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KEYWORD: CLUBS

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