The Productivity Commission has put forward a list of recommendations to help curb problem gambling but, if adopted by the Federal Government, they would have a widespread effect on clubs, hotels and casinos that relied on poker machine revenue.

Bruce Woods, owner of Largs Hotel, an Australian Hoteliers Association country executive director and Newcastle-Hunter branch vice-president, said the proposed changes would have a huge effect on Maitland clubs and hotels without solving any of the issues associated with problem gambling. One of the recommendations is to lower the poker machine betting limit from $10 to $1 and another is “managed liberalisation” of internet gambling.

“The attraction for people to play or win is significantly reduced by moving (the betting limit) from $10 to $1,” Mr Woods said.

“People will divert to other areas of gambling, including online.”

“This is singling out one section of the industry.”

Online gambling does not attract the same regulations imposed on clubs and hotels.

“For instance, you can’t use a credit card to bet in a hotel, club or casino, but you can on the internet,” Mr Woods said.

He said the Productivity Commission had ignored some of its terms of reference, including employment and the positive contribution from gambling.

Mr Woods said the Australian Hoteliers Association had made a submission in response to the recommendations and it included the results of a survey conducted by Price Waterhouse Coopers on behalf of the association.

“Evidence has been ignored (by the Productivity Commission) and it has brought in issues that did not suit the terms of reference,” Mr Woods said.

“In doing so, it really lacks credibility.”

If the Government adopts the recommendations, it will be making laws that will have a huge effect without the evidence to support it, Mr Woods said.

He said poker machine revenue was fourth after food, drink and bottle shop revenue at his hotel, but it still played an important roll in the day-to-day functioning of the business and allowed him to build up patronage over the years by carrying out refurbishments and putting more emphasis on dining.