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A town in Australia has lost its fight to keep out virtual online casino gambling machines.

The Victorian Civil and Administrative Tribunal (VCAT) over- ruled theVictorian Commission for Gambling Regulation’s decision to allow a ban of virtual online casino gambling machines in the small town of Drouin, in Gippsland.

The VCAT president, Justice Stuart Morris, said that Drouin was not a disadvantaged area. There was no justification, he said, for banning virtual online casino gambling machines in Drouin when they are permitted in all other cities in the region.

“If additional gaming machines are not appropriate in Drouin, how could 30,000 gaming machines be regarded as appropriate in Victoria?” Justice Morris asked.

Justice Morris added that the machines would bring benefits to the small town, pop. 6,000. The availability of local gambling, he said, would bring money to the community and decrease traffic on local roads since gamblers would not have to travel. The nearest gambling machines are located six kilometers away in Warragul.

The virtual online casino gambling machines in question are located at the Drouin Family Hotel, which has 20 machines. Annual gambling losses from these machines are expected to be around the $1.5 million mark.

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Virtual casino machine operators in the Maryland region of Baltimore City and Baltimore County annually cheat the government out of about $15 million in tax revenue annually, according to a report by the Abell Foundation.

The Abell Foundation study found that operators of the virtual casino and gaming machines, including video poker, under- report their earnings by up to $153 million each year.

The virtual casino machines are located in corner bars and convenience stores across the state. Many establishments pay out winnings, which is illegal in the state of Maryland. They keep records of the winnings, often in code, in places that are inaccessible to police and inspectors.

The report, largely written by former Maryland Sun reporter Joan Jacobson, recommends that the state go in one of two directions: it should either legalize virtual casino gambling completely in order to be able to fully regulate it, or ban the virtual casino and gaming machines.
City officials say that they are too poorly financed to center too much attention on this problem. “The Police Department’s primary focus is crime,” said Edward J. Gallagher, the city’s top finance official. “And so many of our resources are pointed toward that.”
The Abell Foundation studies solutions to problems of inner- city poverty.

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